Tesla 'The Biggest Meme Stock' Ever? Expert Says 'Too Much Emphasis On The Magic Wand Of Musk'

Core Viewpoint - Tesla Inc is being labeled as a "meme stock" due to its high valuation compared to traditional automotive and technology companies, which has raised concerns among investment experts [1][3]. Valuation Comparison - Tesla's current price-to-earnings (PE) ratio is reported at 253.5x on a trailing twelve-month basis and 169.5x on a forward basis, significantly higher than its peers like Nvidia (around 25-30) and Apple (around 35-36) [4]. - The valuation of Tesla is considered "crazy" by experts, with comparisons made to Amazon's peak valuation, which was nowhere near Tesla's current levels [4]. Compensation Concerns - The new compensation package for CEO Elon Musk has been criticized as "foolish" and "reckless," potentially leading to issues for shareholders [4]. - Experts argue that no individual should be compensated at a level of $1 trillion, highlighting the risks associated with Musk's potential departure from Tesla [5].