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Is Tesla stock now in dangerous bubble territory? This shocking new number should frighten the bulls

expanding market cap looks rather insane right now if one ponders a new stat — in large part caused by that ever-expanding market cap.

TSLA) came within $1.3 billion of being worth more than the 18 member MSCI World Auto Index (excluding Toyota), according to new data supplied by Bloomberg. Take that into account for a second — one company (Tesla) with a mixed track record of profits and still a few steps removed from being a startup nearly worth more than mostly all the automakers in the U.S., Western Europe and Japan, combined. Chrysler? Who is that? General Motors? Kind of heard of them, don’t they make go-carts?

Ferrari is cool, but who cares — Tesla Model 3s will be in the driveways of the ultra-wealthy in 2021!

It just doesn’t make sense.

Suffice it to say, 2020 in the markets has become the year of Tesla (followed closely by Zoom).

Monday as the stock split five-for-one. The stock has gained 12% over the past five trading sessions. Besides Tesla bulls cheering the stock split (this Robinhood crowd loves cheaper stock prices), they remain hopeful Elon Musk will unveil a million-mile battery at a Sept. 22 event. The bulls are also letting their gains ride on Tesla ahead of a potential inclusion into the S&P 500 this year — which could trigger a new wave of buying by fund managers.

NEW YORK, NY – AUGUST 7: Tesla cars sit parked outside a Tesla dealership in the Red Hook neighborhood in Brookly in New York City. (Photo by Drew Angerer/Getty Images)

For his part, Tesla bull Dan Ives of Wedbush Securities is staying upbeat on the stock despite it skyrocketing this year. Ives has a bull case price target on Tesla of $700 a share.

told Yahoo Finance’s The First Trade.

Others on the Street are growing very concerned about Tesla’s lofty valuation and expect a short-term pullback in the stock.

ZM) as being too rich for his blood at current valuation levels.

@BrianSozzi and on LinkedIn.” data-reactid=”41″>Brian Sozzi is an editor-at-large and co-anchor of The First Trade at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

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