Tesla shares — unsafe at any speed?
Apparently so, according to consumer advocate and former presidential candidate Ralph Nader, who issued a stark warning this week, not only on the electric-car maker’s pricey stock, but on the stock market as a whole.
‘When the stock market bubble implodes, it will have been started by the surge in Tesla shares beyond speculative zeal.’
That Nader tweet hit in the wake of Tesla TSLA, -0.49% topping $100 billion in market cap to become the world’s second most valuable car maker.
“Deep in debt, selling less than 400,000 vehicles last year and challenged by several competing electric car models in 2020, Tesla’s stock valuation stunningly exceeds VW which sold over 10 million vehicles last year,” Nader added in a follow-up tweet. “Watch out, Tesla believers.
Of course, his stance didn’t sit well with Tesla fans.
“Tesla is a tech company, not just an auto maker,” Brian Lovett wrote. “Your old guard way of thinking is what got the other auto makers scrambling to catch up, and the movie industry scrambling after Netflix NFLX, +4.79% , and the music industry fighting streaming, and Taxi’s fighting Uber UBER, +0.84% …”
Others just let their GIFs do the talking:
On the opposite end of the spectrum from Nader, plenty of others are wildly optimistic about the Tesla, even after the latest rally. Ark Investment founder Catherine Wood, for instance, told CNBC that she sees shares hitting $6,000 within five years, which would make it a trillion-dollar company.
Also check out: This is the best bullish case ever made for Tesla, according to prominent Tesla bear
Meanwhile, Tesla shares gave up early gains to turn negative on Thursday, while the Dow Jones Industrial Average DJIA, -0.35% dropped triple-digits. The S&P SPX, -0.20% and Nasdaq COMP, -0.07% were also lower.