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Near Its All-Time High, Should Tesla Motors, Inc. Investors Cash Out?

After taking a close look at Tesla (NASDAQ: TSLA  ) stock with a SWOT analysis in the video below, Fool contributor Daniel Sparks and industrials bureau chief, Blake Bos, discuss Tesla's valuation.

Acknowledging that the stock is expensive by basically every possible valuation metric, Daniel suggests that investors don't immediately dismiss Tesla as a sell. For investors with Foolishly long-term horizons, cashing out on every potentially overvalued stock isn't necessarily the best practice. As long as Tesla is either meeting or exceeding shareholder expectations (and that seems to be the case), investors should consider keeping the stock in their portfolios despite a questionable valuation, Daniel says. On the other hand, Tesla's excellent execution doesn't automatically make the stock a buy, either.

Check out the video below to see whether Daniel thinks Tesla stock is a buy, sell, or hold.

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Read/Post Comments (3) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 10, 2014, at 9:27 PM, merlej1934 wrote:

    these boys are realy up on how to play stocks

  • Report this Comment On February 11, 2014, at 7:57 AM, Hudson2 wrote:

    200 is just a stop on the way up. Looking at past metrics, its expensive. Looking at future, it is inexpensive, which is why it keeps going up. 400,00 cars a year isn't really question of IF it will happen. It's WHEN it will happen. 60 Billion Market Cap by the time Tesla is making 400,000 cars/year is pretty reasonable. 2-3 times sales by then. 400,000 per year is about 20-30 Billion in Revenue. That is what you pay for. A company that has increased revenue 760% this year. The growth is insane and pretty easy to see as real. Yes, the future growth hasn't happened yet. If you think this company will fail, bet against it. If you think it will do what it says it will do, buy it. Try to bet against the car company who is destroying its competition for it's price. It will be a mistake. The X will be a bigger hit and the best car on the market. The E will be the most anticipated car in Global History. The Revolution has begun. Bet on Oil and you will lose.

  • Report this Comment On February 11, 2014, at 10:47 AM, joeinslw wrote:

    Let me get this straight, the longs should sell so all the shorters can make money if tsla goes down?

    It has been traditional for tsla to go up, and these guys holding short positions are expecting to cash in when it goes down, LOL it has not done that, will not do that, so just join us and do it the old traditional way....just buy it.

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Daniel Sparks

Daniel is a senior technology specialist at The Motley Fool. To get the inside scoop on his coverage of technology companies, follow him on Twitter.

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8/27/2015 3:59 PM
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