Has Tesla Lost Touch With Reality?

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In the following video, Motley Fool industrials analyst Blake Bos takes a look at Tesla Motors' current share price, and why it may be disconnected from reality. Shares of the company are up 117% year to date, with a sharp pop on earnings news after the company announced its very first profitable quarter. These increases bring the company up to a market cap larger than FIAT, and potentially only slightly smaller than Lexus would be if it were a stand-alone company. Blake compares sales for these two brands to current sales for Tesla, and shows investors what kind of already-baked-in growth Tesla's share price would have to hit in order to justify its current valuation. Finally, Blake gives his overall take on Tesla, and whether it's a buy, a hold, or a sell at today's prices.

Near-faultless execution has led Tesla Motors to the brink of success, but the road ahead remains a hard one. Despite progress, a looming question remains: Will Tesla be able to fend off its big-name competitors? The Motley Fool answers this question and more in our most in-depth Tesla research available for smart investors like you. Thousands have already claimed their own premium ticker coverage, and you can gain instant access to your own by clicking here now.

The article Has Tesla Lost Touch With Reality? originally appeared on Fool.com.

Blake Bos has no position in any stocks mentioned. 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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