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

By Daniel Sparks and Blake Bos - Feb 10, 2014 at 6:30PM

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After recovering from a brief sell-off, Tesla stock is looking incredibly expensive again. Is it time for investors to sell?

After taking a close look at Tesla (TSLA 0.78%) 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.

Blake Bos has no position in any stocks mentioned. Daniel Sparks owns shares of Tesla Motors. The Motley Fool recommends Tesla Motors. The Motley Fool owns shares of Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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