Wall Street Insiders Choose Tesla As Stock Of The Year ++ It certainly has been a very interesting year in a number of ways.
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Posted on EVANNEX on December 31, 2020 by Iqtidar Ali
It s been a tumultuous year on Wall Street. Many blue-chip companies experienced great volatility in light of this year s pandemic. Some have thrived, others have dived. So who has come out on top? A number of Wall Street insiders have crowned Tesla 2020 s stock of the year.
It s been a magical year for the stock, no doubt, but is it justified?
It s been a dizzying ride for Tesla s stock in 2020.
TheStreet
Tesla trades at 21x its trailing-twelve-month (TTM) revenue of $28 billion and over 1000x its TTM earnings. Even Tesla s CEO, Elon Musk, has quipped that Tesla s stock price is too high. Its market cap is higher than Volkswagen, Toyota, Daimler, BMW, GM, and Ford
combined. In total, those companies sold 40 million cars in 2019. Tesla sold 367,000 cars last year.
But the stock market doesn t care about last year. It cares about next year (when it can see past the current quarter, at least). Therefore, it cares about growth, and by that metric, the best comparison for Tesla in 2020 might be to a high school LeBron James. Tesla is dunking on everyone.