About Tesla's decline
Tesla's historic value as a company has always been excessive.
There's are an abundance of news reports circulating right now offering in-depth analyses of the rapid fall in the value of Tesla stock over the past couple of months.
While this dramatic change of fortune may inspire some gasps and smirks, it also needs to be considered in context.
Tesla's historic value as a company has always been excessive.
There is a considerable amount of illogical enthusiasm priced into the counter. A pull back on the price (even one as dramatic as the one that has just happened now) is really more of 'a correction' than 'a dismantling'. At today's price, the stock is still up over 7% in the past 6-months, and worth more than 45% from what it was a year ago.
Even if the stock had to halve from its current price (as suggested by JPMorgan), it would still be valued at a price / earning ratio that far exceeds its category competition (like BYD).
A Musk fan we are not, but a falling Tesla share price doesn't mean that the brand is done for; it just indicates that the market is possibly starting to price it a bit more realistically than before.
Perhaps there is now some evidence to suggest that even in genius there is madness.