Viewpoint: The politicization of Tesla's stock price through "meme-ification" is illogical
ChainCatcher news, according to Fortune, after Trump's victory, Tesla's stock price has risen by 31%, with a market value increase of $250 billion. This astonishing surge has prompted some Wall Street figures to issue warnings, as Tesla's current stock price is already 28% higher than the average analyst target price, marking the highest level since the tech stock surge after the pandemic in 2021. As of Tuesday's close, Tesla's price-to-earnings ratio reached 104 times future earnings, far exceeding the median multiples of traditional automakers and the average of 32 times for the "Big Seven" tech giants.Adam Sarhan, founder and CEO of 50 Park Investments, stated that he remains optimistic about Tesla's long-term prospects, but he pointed out that "the market's reaction to Tesla after Trump's victory has been explosive; while the Trump administration may indeed bring some benefits, the current surge seems a bit overheated in the short term.""This rally looks difficult to sustain, even if you believe in the long-term growth story of the stock," said David Wagner, portfolio manager at Aptus Capital Advisors and a long-term investor in Tesla, "the politicization and 'meme-ification' of Tesla's stock price is illogical."