Tesla’s stock has been on the up and up this month, though many are positing that the growth has to slow down at some point.
According to CNBC, Miller Tabak chief strategist Matt Maley says Tesla’s stock is in a bubble and is likely to fall again, even despite the company’s recent gains.
“The stock is in a bubble, and I’m not one of those perma-bears. I mean back 15 months ago when the stock dropped below $190, I said ‘back up the truck and buy with both hands’,” Maley said on CNBC’s Trading Nation Wednesday. He continued, “We have to remember that Amazon was in a bubble in 2000. It crashed, it fell 90% — I don’t think Tesla is going to fall 90% — but it crashed, and then 10 years later it was running the world. So even if Tesla is going to run the world someday, it doesn’t mean it can’t drop significantly when it gets as overbought as it is right now.”
Tesla is in a bubble, but that may not be a bad thing for its long-term potential, says Miller Tabak's Matt Maley. He joins Tocqueville Asset Management's John Petrides to discuss the stock's massive run. $TSLA pic.twitter.com/2ugozEmkr1
— Trading Nation (@TradingNation) August 26, 2020
While Maley went on to share that it would be possible for Tesla to get past this bubble, he emphasized that doing so would be key to the company’s long-term success. He also mentioned that another pullback was likely this year, and that it wouldn’t necessarily hamper the company’s momentum.
Tesla’s stock is sitting at $2,243.72 per share at the time of posting, after touching at $2,295.28, another all-time high for the company.
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