Story Stock: Definition and Examples

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2. Tesla

The story of Tesla (TSLA +0.59%) is that of the first luxury electric car maker, with a charismatic CEO, Elon Musk, and predictions that Tesla would become the 800-pound gorilla in the burgeoning electric vehicle market. The company's enterprise value has exceeded $2 billion for the past 10 years despite not becoming profitable on an annual basis until 2020. Tesla's P/E ratio at the end of 2020 was an astronomic 1,342.

Whether everyone will drive an electric vehicle and Tesla will dominate the industry is still undecided. Regardless of the company's future prospects, its stock clearly trades with significant growth potential already priced in.

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About the Author

Mike Price is a 23 year-old Masters of Finance graduate who first started learning about investing on the Motley Fool when he was 13. He is currently seeking a job.

XMFMichaelPrice

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Mike Price has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Axon Enterprise, Bitcoin, and Tesla. The Motley Fool has a disclosure policy.