Tesla $1000???

TUE, FEB 04, 2020

YOUR AFTERNOON NEWS UPDATE AND MARKET ACTION FROM CNBC

AS OF TUE, FEB 04, 2020 • 11:42 ET

DJIA		28887.66
		+1.72%	+487.85

S&P 500		3303.54
		+1.68%	+54.62

NASDAQ		9455.69
		+1.97%	+182.29

EDITOR'S NOTE

Where does it end?? Tesla over $1000? By the end of the day/week?!

Tesla surged over $900 a share this morning. I'm not kidding. You have to look at the price action (see below). It's unbelievable. The stock was under $400 six weeks ago!!

This feels to me like the wild bitcoin days around Thanksgiving 2018. But the thing is, that was a nouveau cryptocurrency fad. This is a real-deal automaker. This company today is worth over $150 billion. That's bigger than Nike! It's twice the size of Caterpillar!!

Also, bitcoin then collapsed and has been on a see-saw ride ever since. What happens to Tesla? Frankly I think this is the worst thing that could happen if you were bullish on the company. You never want to see--I hesitate to use the "b" word--your stock caught up in a "bubble."

Is this one? It's hard not to see it that way. It's not about whether Tesla is correctly valued at $900 a share. It's about how it got there. And what happens now. We already know the short sellers have been massively burned on the way up here. What happens when the downdraft inevitably comes?

Are you jumping in on Tesla here thinking you'll flip it to the next sucker at a higher price? Be careful. I can't wait to see what happens next. We'll have a whole lot more coming up at 1 p.m. today on "The Exchange."

See you then!

Kelly

P.S. The Super Bowl players were all over it.

Kelly Evans
Twitter: @KellyCNBC

Instagram: @realkellyevans

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