The Real Story Behind Tesla Stock
What is driving the Insanely High Tesla Stock Price?Tesla has gone from being an innovative startup to one of the biggest companies in the world, and its stock has been on an incredible trajectory over the past year. The company's stock has skyrocketed from around $200 per share at the beginning of 2020 to above $600 per share by the end of the year, and it is now trading at around $740 per share as of February 2021.Investors are concerned about Tesla's high stock price, as it seems to be dangerously disconnected from the company's fundamentals. So what is driving the insane stock price of the company?The EV RevolutionThe most obvious to answer to the question is the EV Revolution. Tesla has been at the forefront of the EV revolution, pioneering and revolutionizing the future of Electric Vehicles. The company has been making a big push into the EV space ever since the launch of the first Model S and has expanded rapidly since. Tesla’s EV lineup consists of five different models at the moment and is constantly innovating by introducing new features and models.This has led to a lot of interest in the company and its products, and it goes some way in explaining the surge in Tesla’s stock price.The Inflated ExpectationsThe other big factor behind Tesla’s high stock valuation is the extremely high expectations for the company’s future. Investors and analysts have incredibly high expectations for the company, expecting it to be the leader of the EV revolution. Tesla has had a rough start to 2021 and experienced some significant drops in the stock price, which shows that investors are not always satisfied with its performance.This high expectation is both a blessing and a curse for the company. If Tesla does not perform according to these expectations, its stock price can drop significantly, as we’ve seen so far in 2021.ConclusionThe above factors have been the driving forces behind Tesla’s incredible stock price. Tesla is a company with a lot of potential, and if the company can deliver on its promises, its stock price will only go up. That said, the company faces a lot of risks and uncertainties, and investors should be wary of the high valuation of the stock and manage their risks accordingly.