Tesla Stock Is Down This Year, and SpaceX Is Volatile. Are Either Worth Owning Right Now?
Tesla and SpaceX remain extraordinary companies, but at current valuations, investors are being asked to pay today for outcomes that are still years away from being proven.
Overview
There is a particular kind of investor mistake that doesn't feel like a mistake while you're making it. You admire a company genuinely. You might like its engineering, its ambition, the degree to which it has embarrassed more complacent competitors, and that admiration quietly migrates into your portfolio. The two things feel related.
But they aren't. Respecting what a company has built and believing in its stock price are epistemically distinct judgments, and conflating them is how intelligent people end up holding expensive stories instead of businesses. That distinction is worth keeping in mind as we examine where Tesla (NASDAQ: TSLA) and Space Exploration Technologies Corp (NASDAQ: SPCX) actually stand.
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.