Sunday, February 2, 2020

Tesla stock's wild ride prompts valuation expert to sell

Tesla Inc.’s surging share price made a seller out of Aswath Damodaran, a New York University professor and the author of four books on corporate valuation. Damodaran sold a stake in the electric-car maker at $640 a share on Thursday that he bought at $180 last June, according to a post on his Musings on Markets blog. He didn’t disclose the number of shares. Damodaran wrote that the sale followed an analysis that valued Tesla at $427 a share, or 32% less than the price he received. “Tesla’s stock price could continue to go up,” he wrote, though any gains may be tied to momentum rather than valuation.

** 2-1/2 years later ** 

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