The Last Time Tesla Did This, Its Shares Fell By A Third In Two Months

The Last Time Tesla Did This, Its Shares Fell By A Third In Two Months
Andrew Rummer

over 2 years ago1 min

Mentioned in story

Tesla’s 56% rally over the past month has driven the automaker’s shares back into the top five biggest US stocks – behind only Microsoft, Apple, Amazon, and Alphabet – and left it trading at a record premium to analysts’ price projections.

Elon Musk’s company entered the S&P 500 in December 2020 as the benchmark’s fifth-largest member, before steadily slipping down the rankings. But after a stellar month, culminating in a 100,000-vehicle order from car rental firm Hertz, Tesla has once more stormed the list of America’s most valuable companies.

While Tesla may make the top five by valuation, however, its profits aren’t anywhere near as impressive. While Apple, Microsoft, Amazon, and Alphabet have all posted adjusted Ebitda over the past 12 months ranging from $67 billion up to $120 billion, Tesla has managed just $7 billion. That’s nothing to sniff at, sure, but it only makes Tesla the 102nd most profitable company in the S&P 500.

And, as you can see in the chart above, Tesla’s gains have pushed its stock to a record premium to analysts’ price projections. The average Wall Street suit thinks Tesla should be trading at $764, compared with Monday’s close of $1,208. The last time such a large gap opened up – back in January – the stock fell by a third over the following two months.

Tesla’s German-listed shares slipped 3% as of 9:05am Frankfurt time on Tuesday, as Musk pointed out in a tweet that the Hertz deal hasn’t yet been signed.

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