Why Tesla stock keeps going up
Enticing investors with big, round numbers like $1 trillion, without providing math to support the number, is a great way to attract momentum traders to Tesla stock. More cautious investors, however, shouldn't ignore the math. After its run-up these past few days, Tesla stock now costs a distressingly high 88 times trailing earnings, and 322 times free cash flow. Tesla's going to have to grow awfully fast to justify those multiples. Worse, it may have only four years in which to grow before regulations change again. Do you want to bet on all that growth happening in such a short time?Because I don't. This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.