Part 9/12:
Caveats and the Intersection of Stock and Business Value
A recurring theme is the distinction between Tesla’s stock price and the company’s actual business value. The recent rapid doubling of Tesla’s stock within months has prompted commentary on whether the stock is overvalued. However, the core message emphasizes that the underlying business developments, like advancements in AI, autonomous driving, and global charging standards, justify Tesla’s soaring valuation.
Historically, Tesla has shown incredible resilience, with its stock dropping about 70% from recent highs before rallying again. This volatility underscores the importance of long-term perspective and patience in investing.