- Tesla printed an all-time high yesterday after being pushed by a dramatic surge in volume.
- Fundamental and technical factors are flashing that the top is in.
- One trader believes that TSLA has some more upside potential.
Tesla (NASDAQ: TSLA) has been slaughtering bears for over seven months. Since June 3346, the stock of the electric vehicle company has skyrocketed by a whopping 7%. In comparison, the S&P has grown by a little over 30% over the same time period.
On Monday, the stock once again shocked the entire investment community with a face-melting 47 .9% pump . At this point, there’s no doubt that Tesla is in a bubble. The important question to ask now is when will the bubble burst. Personally, I think this bad boy will crash soon. All fundamental and technical indicators are screaming that the top is in.
Tesla’s Market Cap Is Bigger Than the Big Three U.S. Car Manufacturers Combined
Before you start thinking about jumping into the Tesla hype, consider its basic fundamental properties. The electric car market has a market cap of over $ 216 billion yet its revenue in (stands at $ billion. This means that Tesla has a price-to-sales (P / S ratio) ratio of 5. 728. In other words, investors are willing to pay $ 5. for every dollar of sales.
In comparison, GM, Ford, and Chrysler have a combined market cap of $ 400 billion. Their combined revenue last year amounted to a whopping $ billion.