We discussed high multiples such as P/E in class this week. TSLA is a good example. It doesn’t even have a P/E because it has negative earnings. The price to book is around 29, much higher than the 1.33 recommended by books like “The Intelligent Investor.” My favorite quote from the article:

“A hard look at Tesla’s underlying financials shows the company to be an investment only for those with strong stomachs.”

Buyer beware.

-Dr. Moore

http://www.latimes.com/business/hiltzik/la-fi-hiltzik-tesla-hype-20160401-snap-htmlstory.html