Elon Musk Thinks Tesla Will Become the World's Most Valuable Company. I Predict Its Stock Will Decline by 50% (or More) Instead.
Tesla (NASDAQ: TSLA) stock soared 63% last year, reaching a new all-time high in December, shortly after President Trump's election win. Investors speculated that a friendlier regulatory environment could help the company fast-track its autonomous driving and humanoid robotics technologies, which some Wall Street analysts believe could become trillion-dollar platforms.In fact, CEO Elon Musk believes Tesla is on track to become the most valuable company in the world. He even believes there is a possibility it will be worth more than the next five largest companies combined -- today, those five companies would be Apple, Microsoft, Nvidia, Amazon, and Alphabet, and they have a total market value of $13.4 trillion.However, Tesla stock is currently heading in the wrong direction with a 44% drop from its recent peak as of this writing. I don't think it has a legitimate pathway to becoming the world's most valuable company, and here's why I predict it might even lose a further 50% of its value instead.Continue reading
Tesla (NASDAQ: TSLA) stock soared 63% last year, reaching a new all-time high in December, shortly after President Trump's election win. Investors speculated that a friendlier regulatory environment could help the company fast-track its autonomous driving and humanoid robotics technologies, which some Wall Street analysts believe could become trillion-dollar platforms.
In fact, CEO Elon Musk believes Tesla is on track to become the most valuable company in the world. He even believes there is a possibility it will be worth more than the next five largest companies combined -- today, those five companies would be Apple, Microsoft, Nvidia, Amazon, and Alphabet, and they have a total market value of $13.4 trillion.
However, Tesla stock is currently heading in the wrong direction with a 44% drop from its recent peak as of this writing. I don't think it has a legitimate pathway to becoming the world's most valuable company, and here's why I predict it might even lose a further 50% of its value instead.
