This is pure gambling at this point. There is no justification for Tesla stock to be at this sky high price level. Eventually common sense and fundementals are going to catch up with this tulip fever and this stock will be back down to $40 where it belongs.
Yep. And $40 isn't even valued for fundamentals. That IS pricing in absolutely insane growth. At 20k cars per year, at 15% profit per car at $100'000, that's 300 million. A P/E multiple of 12 gives this a market cap of 3.6 billion, or about 20% of what the stock price is at now.
Note that 15% profit per car is a super unrealistic optimistic number.
Can you point me to a company with P/E of 12 which grows at 50% rate? There are NONE! Because low P/E will mean that it's either a value giant or a #$%$ company and nobody wants to buy its shares.
The fact of trading is: companies have low P/E for a reason. Because they don't grow and investors don't want to invest in them. Companies with high P/E usually tend to go even higher. 90% of stocks with low P/E go even lower in price.
Though I agree that TSLA is overvalued at this moment quoting some silly numbers like $40 only discredits you as a troll. Again this is a growth company. It has high P/E because investors expect earnings to grow at high rate into the future.