The stock price of Elon Musk’s company Tesla has risen 800 percent in the past year. However, some of the biggest share-holders of the California-based firm are trimming their stakes.
Investment researchers have warned that even though Tesla’s stock may rise 400 percent this year, it is the most dangerous stock on Wall Street as the fundamentals do not support its high price and valuation.
Stating that this might be one of the biggest house of cards waiting to fold, New Constructs CEO David Trainer told CNBC’s ‘Trading Nation’ that no matter what the company’s future road map is, the price of the stock shows that the prices are going to be higher.
In past one year alone, Tesla stock has risen 800 percent, with last week proving to be volatile for the firm. The company’s shares were last trading down around 4% on the day at 32 at 327.45 euros ($387.54) per share in Frankfurt.
Trainer also warned that the company stock split may be detrimental for the new investors.
Meanwhile, Teslas’s largest outside shareholder, investment management company Baillie Gifford, has also trimmed its stake.
Sourse: sputniknews.com
