Today's newsletter from Chartr is all about Tesla. (Actually Monday's newsletter, but close enough for me.)
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| Tesla Operating Profit |
If you bought shares of Tesla early, as in any time before 2021, you're sitting pretty. Ever since then it's been a gamble. Shorting Tesla, that is, betting that the stock price is going to collapse, has been a popular sport, and with the P/E ratio (Price to Earnings) sitting around 70, shorting the stock still looks like a good bet. Normal industrial stocks have a P/E ratio of around 20 - $20 of stock will net you one dollar of earnings every year. Now if you think Tesla is going to continue to grow exponentially, you might be willing to gamble on it. However, from looking at the above chart it looks like the growth is no longer exponential. But given the stock's performance, it kind of looks like the people who are buying Tesla are not hard headed finance guys, but ordinary folks who are operating on emotion, and those people love Tesla. From Chartr:
Much of that meteoric rise has been down to everyday investors that Musk has converted into a legion of loyal, often loud, devotees — who aren’t afraid to put their money where their mouth is.






















