In 2018, the electric car maker, Tesla, was struggling to get the Model 3 electric vehicle off the production line. Its CEO, tech entrepreneur Elon Musk, was working up to 22 hours a day on the factory floor, trying to solve a host of problems on the car he’d bet the company on. It was close to running out of money. Two years later, the company’s doing better. It says it will grow 30-40% this year. No surprise then that Tesla’s share price has gone up. But the amount may surprise you – up eight fold in the last year, to $400 a share. Making it the most valuable car company in the world. It’s now worth more than Toyota, Volkswagen and Honda put together. But yet it still manufactures only a fraction of the cars they make.
So are shares in Elon Musk’s Tesla vastly overvalued? Sumant Bhatia talks to our CIO Christopher Rossbach, who thinks the shares are in a bubble.