Should You Buy Tesla Stock Right Now?
Shares of Tesla (NASDAQ: TSLA) have surged since S&P Global announced last month that it would include shares of the electric-car maker in its closely watched S&P 500 index. Given Tesla's $550 billion market capitalization today, the market-cap-weighted index will need to make a major purchase of the company's shares. In addition, many funds that mimic the S&P 500 will likely similarly purchase shares. Investors seem to be betting that this enhanced appreciation for Tesla stock among funds will drive the price higher.
Tesla stock's wild run this year has attracted the attention of many new investors. Shares of the growth stock are up nearly 800% over the past 12 months and 600% year to date. The run-up has made Tesla's market value greater than the next five largest automakers combined.
With so much excitement on the Street for the electric-car maker, is it time to buy Tesla stock? Or has the stock's recent gain made shares overvalued?
Source Fool.com