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

Introduction

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.

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