Tesla Inc’s (NASDAQ:TSLA) incredible run to the upside – reporting nearly a 400% gain just this year – has left many a fundamental investor baffled.

Last month, Tesla reported its 4th straight quarter of profits which qualifies the company to join the S&P 500 Index (INDEXSP:.INX). This inclusion will only fuel further investment from traders worldwide. The 5-for-1 stock split also seems to have spurred on traders to get involved, even if the underlying value and fundamentals behind the stock price remain unchanged.

Why are investors happy to buy Tesla for what seems to be a very large premium?

Tesla is a forward looking company and investors are paying for innovation and growth. Tesla, like Steve Jobs and Apple Inc. (NASDAQ:AAPL) have done before them, are changing the way the world consumes products. Not only are Elon Musk and co. disrupting the way people drive cars, but they are also an alternative energy play. If you track the SOLAR ETF (NYSEARCA:TAN), it is up more than 66% year to date and one of the top performing sectors.

You can also make an argument that because interest rates are low, there is little else for investors to get involved with. (except possibly gold – like small-time traders such as Warren Buffett 😉)

Watch the full interview to find out if we think Tesla is still worth investing in and where we see the stock price trending in the future.

Written by James West

 

P.S. Legendary trader and hedge fund manager Tom Busby just told me something extremely important… and it could directly impact your trades and hard-earned cash. 

Listen in on our two-minute conversation. 

But be careful… this conversation contains important details on how YOU can get in on this ONE Primetime Stock

…a stock that has gone up every single year on August 31. 

Click here now! 

My Top ETF as GameStop Prepares to Report Earnings

My Top ETF as GameStop Prepares to Report Earnings

 The market is little changed following news that the U.S. House passed a debt ceiling bill and sent it to the Senate. The Fiscal Responsibility Act passed with bipartisan support, and is key in raising the debt ceiling and preventing the U.S. from defaulting....

read more
My Top Trades With More Tech Earnings on Deck

My Top Trades With More Tech Earnings on Deck

 Before we get to today’s stock market outlook, I want to let you know that I’m appearing on “Roundtable With Don Yocham” alongside Celeste Lindman and Jeffrey Muller at 11 a.m. ET today, May 31! Join us here: https://prosperitypub.com/roundtable We’ll discuss...

read more
2 Overdone Sectors and an End to the Debt Ceiling Crisis

2 Overdone Sectors and an End to the Debt Ceiling Crisis

 The major indexes rose to start the shortened trading week Tuesday morning on positive news regarding the debt ceiling debate. President Joe Biden and House Speaker Kevin McCarthy appeared to reach a deal over the long Memorial Day weekend on raising the U.S. debt...

read more