Prominent Finance Professor Buys Tesla At $180, Skeptical Redditor Says 'Everything Above $100 Is Overvalued'
Portfolio Pulse from Surbhi Jain
Aswath Damodaran, a prominent finance professor, recently purchased Tesla Inc (NASDAQ:TSLA) stock at $180, sparking discussions among investors on Reddit's r/ValueInvesting about Tesla's valuation. While some Redditors see Damodaran's purchase as timely, citing his expertise in valuation and Tesla's diversified offerings, others express caution due to concerns over Tesla's P/E ratio, economic challenges in China, and uncertainties around Model 3 refresh qualifications for tax credits. Technical analysis suggests potential support for Tesla's stock at $160.

March 11, 2024 | 7:27 pm
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NEUTRAL IMPACT
Aswath Damodaran's purchase of Tesla stock at $180 has led to mixed reactions among investors, with some viewing it as a timely investment given Tesla's diversified offerings, while others are cautious due to economic challenges and valuation concerns.
Damodaran's purchase of Tesla stock and the subsequent discussion among investors highlight the divided opinion on Tesla's current valuation and future prospects. While some investors are optimistic about Tesla's diversified offerings and potential for growth, others are cautious due to its high P/E ratio, economic challenges in key markets like China, and uncertainties around product refreshes. This mixed sentiment could lead to short-term volatility in Tesla's stock price, but the overall impact is uncertain, hence a neutral score.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100