"Elon Musk is selling investors a future of driverless cars, robot assistants and life on Mars. The problem is there's only one way to buy into his vision: Tesla Inc.'s stock. The electric-vehicle maker's shares, which hit their first record of the year on Tuesday, are up roughly 20% in the last four weeks. Since tumbling to a low on April 8 during the height of panic over the Trump administration's tariffs, the stock has soared 111%,"
"The rally is a testament to Wall Street's faith in Musk's artificial intelligence ambitions, particularly since Tesla's core auto business is struggling. But it has also made Tesla shares extremely expensive. At 214 times earnings over the next 12 months, the stock has the second highest valuation in the S&P 500, trailing only Warner Bros Discovery Inc. and far ahead of number three Palantir Technologies Inc., another high-flyer that trades at 178 times forward earnings."
"With Musk's SpaceX possibly going public next year, stock traders looking for Elon exposure will likely have another way to get it before long. The space exploration company is planning an insider share sale that would value it at $800 billion, making it the most expensive privately held business in the world. Its initial public offering would be the largest ever."
Tesla shares have surged after hitting a year low in April, rising roughly 20% in four weeks and about 111% since the panic over tariffs. The rally reflects investor faith in Elon Musk's artificial-intelligence ambitions even as Tesla's core auto business struggles. The stock trades at about 214 times forward earnings, the second-highest valuation in the S&P 500 behind Warner Bros Discovery and far above Palantir at 178 times. SpaceX plans an insider share sale valuing the company at roughly $800 billion and could pursue the largest-ever IPO. A SpaceX listing could redirect investor demand and pressure Tesla shares.
Read at www.mercurynews.com
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