Tesla (TSLA) is one of the most talked about and fastest growing companies in the world. In recent months, it has seen incredible success in the stock market. Tesla stock has gained an incredible 840% year-to-date and currently trades around $2,000 per share. With a market capitalization of nearly $385 billion, it is now the fifth most valuable publicly traded company in the world.
Despite the positive sentiment, Tesla still faces a few challenges that could have an impact on its stock price. Short sellers, who believe the stock has been overvalued, have been increasing their positions in Tesla. The company also recently announced a 5 to 1 stock split, which some investors see as a signal that the company is overvalued.
Furthermore, the company has so far failed to meet its ambitious production goals. This has raised concerns that if production does not ramp up, the stock price could be adversely impacted.
On the other side of the table, there are those who argue that the company is still in the early stages of growth and has potential to move higher. Tesla is certainly an innovative company that could disrupt traditional industries, such as energy, transportation, and manufacturing. This has led to a lot of optimism about the future of the company.
Overall, investors should understand the potential risks and rewards associated with investing in Tesla stock. There is no doubt that Tesla has tremendous potential, but there are also potential drawbacks that could lead to a plunge in the stock price. As with any risky investment, investors should conduct their own research and carefully consider the risks before investing.