Tesla Stock Called “The Biggest Meme Stock” by Yale School of Management Dean
Tesla, listed on NASDAQ: TSLA, has recently been labeled as “the biggest meme stock we’ve ever seen” by Jeff Sonnenfeld, Senior Associate Dean at Yale School of Management, in a recent interview with CNBC.
Sonnenfeld’s remarks reflect the sentiments of many skeptics of the company, who argue that Tesla’s price-to-earnings ratio is excessively high compared to other tech companies like Apple, Nvidia, and Microsoft.
While Tesla does trade at a significantly higher P/E ratio than its peers, it is essential to note that Tesla is not traded like a typical company.
Sonnenfeld criticized Tesla’s P/E ratio of over 200, stating, “When you’ve got stocks like Nvidia with a P/E ratio around 25 or 30, and Apple and Microsoft around 35 or 36, being at a 220 P/E is out of line. They’ve put too much emphasis on the magic wand of Musk.”
Analysts have acknowledged that Tesla is an unconventional stock, often traded based on narrative rather than fundamentals. Ryan Brinkman of J.P. Morgan commented that Tesla shares have become detached from the fundamentals.
Dan Nathan, a former Tesla skeptic, recently turned bullish on the stock citing “technicals and sentiment.” He noted that Tesla shares exhibit strength by holding key moving averages and resisting current levels.
Sonnenfeld highlighted the focus on Elon Musk’s influence on Tesla shares, suggesting that investors might rely too heavily on Musk’s actions and statements.
Elon Musk’s recent $1 billion purchase of Tesla stock, his largest ever, has further fueled speculation and interest in the company. This significant purchase by Musk led to a surge in Tesla’s stock price.
Tesla’s current trading price stands at $423.76 as of the latest update.