Tsla Is There More Upside Left

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Tsla Is There More Upside Left

Tesla (Tsla): Is There More Upside Left?

Tesla (TSLA) has gained almost 85% in a duration of under 3 months. Amidst all of this, many are wondering if Tesla (TSLA) has reached a peak or if more upside is ahead.

There's no doubt that Tesla (TSLA) has proven to be a goldmine for many investors. For example, buying Tesla (TSLA) in Oct would have led to an upside of 85%.

Tesla (Tsla) Is Up By 1085%

In fact, Tesla's (TSLA) stock price has gone up by 1085% in the last 5 years alone. This has caused FOMO among the investors, but many are also hesitant to buy the stock at such elevated levels.

In 2024, the vehicle sales of Tesla took a hit, which was one-kind-of-a-event. But, the drop was not that big when we looked at the past data. As of now, Tesla (TSLA) is still delivering thousands of cars every week.

Another thing to remember is that Tesla (TSLA) is now operating in a highly competitive market. So, things are not the same as they were around a few years ago.

Also, Tesla (TSLA) has earned a name for itself due to its high-quality build cars and innovative technology. This means Tesla (TSLA) can now hold its own as a market leader despite the overwhelming competition.

The P/E ratio of Tesla (TSLA) is currently at 110. This means if someone bought Tesla at its current valuation, it would take 100+ years to earn back the acquisition cost.

The bottom line is that Tesla (TSLA) looks overvalued even if we consider the growth prospects of the company. However, the market momentum is also enough to drive the stock prices higher.

But as far as the business fundamentals are concerned, there's no rational reason to buy the Tesla (TSLA) at these levels. But a sharp fall in the stock price of Tesla (TSLA) will make it a better option based on its fundamental data.

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