This year it will be 15 years Tesla (NASDAQ: TSLA) Saved on the stock exchange. In these years, it seems that there was no endless battle between the bears claiming that Tesla’s shares were certainly going to fall, and bulls that decided that the case of long -term investment was not fully reflected in the price.

As always, it is.

Tesla supplies increased by 808% in five years and 84% from the end of October.

But with market capitalization in the amount of 1.2 % and the price index for profit (P/E) of 108, the current valuation of Tesla seems to be included in huge The amount of growth potential – and even then can be seen as a path.

I like the company’s prospects and I think that its mighty brand, reserved technology and a immense customer base are good to set her on continuous commercial success.

But is there at this moment in some way that throws Tesla inventory, taking into account his dizzying valuation?

Three possible drivers for a higher valuation

It depends on what I expect from the company in the coming years and decades.

I see several possible drivers who push Tesla supplies even higher.

One that we have seen many times in the past (look at this profit since October!), It is, it is momentum. Stock market participants, who are afraid of loss, often got into Tesla shares, increasing the higher price.

But this approach based on rush is not interested because I think it is closer to speculation than investing. I prefer to invest in a company (or not) based on business bases.

Business transformation potential

Can the basics justify a higher price?

Again, I think the answer is potentially yes.

One driver can be much better earnings. Although the amount of sales of the company has slightly decreased last year, it has a long history of revenue growth and I think it has, for example, tools, for example by introducing recent models.

In addition, in the scope of cars, scale economics are a great thing (without the intended game of words).

Strong sales of Tesla means that in the coming years it can improve profit margins by removing costs, as well as the sale of high -margins of profit. One of the risks I see there is that a competitive electric vehicle market may mean that it has to compete in terms of price more and more often, injuring margins.

The third driver is a development outside of vehicles.

His energy storage activities are already riding Gangbusters. In addition, Tesla can also launch recent product lines, from taxi operations without driver to commercial applications, using huge data on customer travel.

If the growth from areas, apart from selling a vehicle, increases earnings, it may drive Tesla’s supplies up.

In 108, the p/e indicator tells its own story

But a lot of it seems to be quite speculative for now.

Meanwhile, the triple digital attitude of the P/E Tesla looks far too high to get my comfort as a would -be investor.

Considering the risk, from the growing competition to the change of tax relief systems in the United States and other countries, the valuation of Tesla shares is valued at over The value of the century earnings at the current level?

I don’t think so.

Again, it seems to me that this is a speculative valuation, more than an experienced investor. So I have no plans to buy Tesla for my portfolio.