What were Tesla investors expecting?
November 06, 2013 at 10:16 AM EST
Tesla’s stock earlier this year was trading at a P/E of nearly 600-to-1, and even that was based on projections of earnings over the coming 12 months from perennially optimistic Wall Street analysts. Stocks trading with that kind of valuation are priced for perfection, and investors should have been prepared for the kind of hiccup that has led the stock to plunge this morning.