Be careful. While it's exceedingly overbought and certainly in a bubble (which will ultimately pop), equity strength usually continues in the absence of major divergences.
so true, OP look at netflix for instance, it was overbought and in a bubble when it first hit $140 a share, when it hit $200 a share, AND when it hit $300 a share
it was obvious to anyone that looked that they had a lot of debt that would be due soon but this ***never*** became "already priced in" as analysts & economists would say
it finally crashed to $70 over multiple quarters, and declined a little further below an expected value
Tesla is following a very similar story, regarding debt and share price increases
I don't see how netflix supports this position, since it was at $63 one year after it was at $140. I see that if I shorted at $140, I would have been squeezed out of my short at $280 and forced to buy back, eliminating any gain from the crash. I don't consider a short squeeze a problem with Tesla, because if the price doubles in a year, putting it near GM market cap, I will want to short it with a position several times larger than the position I am currently looking at. Tesla has sold 15,000 vehicles. GM sells 15,000 every two days.
Is it overbought? I see them all over the place in LA.
Almost half of Tesla sales are to California. What you are seeing is not representative of the US market.
