Elon Musk announces suspension of Bitcoin Tesla purchases
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Tesla stocks have been a hot ticket item for stock market investors with the Elon Musk owned electric car company credited with revolutionising the automobile industry. While some Wall street forecasters might back Tesla’s share price to continue ticking up, author and NYU professor Mr Damodaran warned those considering investing by setting out his alarming case for why the price of Tesla stocks could be massively overvalued.
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“The second is you might have lower-cost producers like Neo that might end up dominating the Asian market.”
“But my my my endgame here is to tell a story convert to numbers come up with the van with this incredibly upbeat story I told for Tesla,” he continued.
“The value that I came up with was I think $600 per share.
“The stock was trading at $1400 I take in every conceivable upbeat part of my story and built it in and my reaction was, hey, if you want to buy Tesla, go ahead, right.”
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Mr Damodaran added: “But from my perspective with my story and my numbers, I can’t justify buying Tesla at $1400.”
It comes as Musk said his deal to buy Twitter was “temporarily on hold” over details around the number of spam and fake accounts present on the site.
The billionaire Tesla owner agreed to a £34.5 billion deal to take over the social media giant last month, pledging to improve free speech on the site and remove fake accounts.
But in a tweet on Friday, Mr Musk said the deal is now on hold “pending details supporting calculation that spam/fake accounts do indeed represent less than 5 percent of users”.
His tweet linked to a report published earlier this month which said Twitter estimates spam and fake accounts comprise less than 5 percent of its daily users.
It is unclear why Mr Musk has said this detail would compromise the deal, and the Tesla boss has not tweeted any further on the issue.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said these figures were a “key metric” in Musk’s plans for the platform, but said the delay could also be a tactic to try and reduce the price of the deal.
“Musk’s Twitter takeover was always destined to be a bumpy ride, and now it risks hitting the skids over the number of fake accounts on the platform,” she said.
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