Tesla Stock’s turbulent pricing is causing quite the scene on Financial Markets. But what is the cause?
Tesla - Ahead of the Competition
People love to follow, and so do companies. Tesla’s lead in the electric car industry has created an array of potential new competitors. GM and other car manufacturers are finally catching up. But for how long?
Elon Musk is always cooking up incredible concepts, ideas and putting them to action. Turbulent times only puts more pressure on Elon to create the next big move. Perhaps he has something up his sleeve.
Between rockets, utes and Elon’s other creations, there is sure to be more. But does that mean the price of over $900 was worth it?
Market Confidence in Tesla Stock
Has market confidence alongside Elon’s incredible success led to an overpriced stock price for Tesla? Every asset has a value, and sometimes investors get overconfident in the asset’s ability to generate income and growth.
The massive pushes up resemble massive growth in price, and amateur investors often get excited and try jumping on the overpriced stock in hope that it continues. It’s a bit like jumping on a skateboard that just got to the bottom of a hill and expecting the same speed. The resulting push down is due to short sellers taking advantage of the overpriced move upward. This has caused a correction in price back down.
What next for Tesla Stocks?
The Tesla stock price may rise or fall from here, it really depends on what Musk considers as his next move. The lesson here, be cautious buying in markets that are all their all time highs. It is new territory and can be very dangerous. Big moves down signify excellent opportunities for value investors to get into the market for much lower prices. Markets move, be ready for anything and know your investments.