- Shares of Tesla are rocketing higher, jumping more than 110% this year alone.
- Some investors believe Tesla has ballooned to levels unjustified by its fundamentals, fueled by risk taking and short covering.
- “Tesla has gone parabolic,” said Matt Maley,Â chief market strategist at Miller Tabak. “The stock is going to get absolutely clobbered at some point before long.”
Shares of Tesla are roaring higher â but some are worried Elon Musk’s electric carmaker might be a speculative bubble that sometimes occurs in financial markets, especially near the end of bull markets.
Rising more than 110% in 2020 alone, some believe Tesla has become unmoored from its fundamentals, fueled by short covering and the fear of missing out among investors not holding the stock.
“Tesla has gone parabolic,” said Matt Maley, chief market strategist at Miller Tabak. “This is taking Tesla well above a level that would be supported by its current fundamentalsâ¦ The stock is going to get absolutely clobbered at some point before long.”