Is this the greatest investment since Apple or is it a giant short squeeze?
Its shares are up 743% since its 2010 IPO and it’s up 370% in the last six months alone. But, is Tesla the greatest investment since Apple or is it on its way to being one of the biggest short squeezes of all time?
Tesla has recently shown that it can sell cars. Data released by the California New Car Dealers Association show the electric car in third place behind the Mercedes E-Class and BMW 5-series in luxury and sports vehicles sold in the Golden State. With 4,714 Tesla Model S cars sold in the first half of 2013, it moved more vehicles than fourth placed Lexus GS and fifth placed Audi A6 combined. It also outsold such iconic luxury brands as Porsche, Land Rover, Jaguar, and Cadillac.
(Read more: Tesla outsells Porsche, Jaguar in California)
Though its sticker price is $70,000, Californians wealthy enough to pay up for the electric luxury get $7,500 back in Federal tax rebates and $2,500 in state rebates. The $10,000 in taxpayer funding is intended to make Tesla a more viable business. For comparison’s sake, the Scion iQ electric model retails for about $15,665.
But, there’s still the fact that the company is worth 40% of General Motors but produces a fraction of the amount of cars. And, short interest represents 32% of total Tesla shares outstanding.
So, is there substance to the run-up in the stock or is Tesla being fueled by something else?
Looking at the fundamentals is Talking Numbers contributor Enis Taner, Global Macro Editor at RiskReversal.com. On the charts is CNBC contributor Abigail Doolittle, Technical Strategist at The Seaport Group.
Is Tesla a luxury of stock unaffordable at these levels? Watch Taner and Doolittle analyze the Tesla in the video above to help you decide.