PHOTO CAPTION: Tesla Motors stock price graph in mid-August 2013

Is Tesla's Stock Overvalued or Destined to be Next Amazon?

Chris Umiastrowski, writing for Toronto's Globe and Mail thinks Tesla could become 'Amazon-style' growth story IF it can successfully capture the mid-priced market.

Published: 14-Aug-2013

I wrote about electric car maker Tesla Motors Inc. back in May, shortly after buying the stock for my personal portfolio. I was interested in adding Tesla to my Strategy Lab portfolio as well, but the stock had already jumped from my mid-$50 (U.S.) purchase price to nearly $70. Given the rapidity of the rise, I said I would love to see the stock drop significantly, making it cheaper to buy.

What’s going on here? Another Amazon-style growth story? Or simply a stock that has become massively overvalued because of investors’ gullibility?

I tend toward the former viewpoint – with caveats. And I base my enthusiasm on an appreciation of just how far Tesla has already come.


Tesla Motors CEO Elon Musk is also the head of SpaceX.

Two electric-drive companies, both based in California, have been sparring and suing each other for years.

Tim Draper, cofounder of Draper Fisher Jurvetson venture capital firm.

Tim Draper, co-founder of $6 billion venture capital firm Draper Fisher Jurvetson, says Tesla has the resources to beat the Detroit Three.

Rafael de Mestre completes around the world journey in his Tesla Roadster electric car.


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