Is Irrational Exuberance About to Burst Tesla's Bubble?

The company's current valuation of $26 billion is'much too high to justify for a company that is not yet profitable,' writes former Tesla shareholder.

Published: 23-Dec-2014


On January 3, 2000, Yahoo (NASDAQ:YHOO) closed at an all-time (pre-split) high of $475 per share. The day before, the company reached an intraday high of $500.13. After the dot-com crash, Yahoo reached a record low of $8.11 on September 26th, 2001.

The story of Yahoo is the story of many new, innovative companies that have a competitive advantage investors like. Investors flocked to Yahoo and other tech companies with the expectation of rapid growth, transformative technology and innovation. Although Yahoo offered a unique platform and good product, the company was significantly overvalued and its share price eventually crashed back down to earth.


Screen capture of Tesla Motor's Chinese language website home page.

If Tesla thinks dealing with intrenched US car dealerships is tough, it's now taking on the bureaucracy of the People's Republic of China.

Tesla Model S range calculator will lose 3 miles for every mile driven when the heating system is on, reports CR.

One year on and CR finds their 85kWh electric car loses a bit of driving range in winter and if left unplugged; they also feel the air conditioning system could be better.

Tesla Model S earned 5 star safety rating in 2013.

While Tesla has enjoyed a largely successful year despite a trio of battery fires, other EV carmakers have been compelled to cut prices to stimulate sales.


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