Tesla (NASDAQ: TSLA) is among 2020’s hottest stocks. As of market close on Monday, the electric-car maker’s shares are up more than 250% year to date. Meanwhile, the S&P 500 is down 2%. The stock’s rise reflects investors’ growing confidence in the company’s long-term prospects as Tesla demonstrates impressive execution.
But has the stock got ahead of itself? After all, the stock’s valuation now prices in not only massive business growth, but also significant improvements in profitability in the years to come.
Are shares priced for perfection? Or is there still room for Tesla stock to run?