Article Title

Tesla vs. its Stock Price: “Herd Theory” at work?

Authors

Yun Cheng, University of West GeorgiaFollow
CARROLL GRIFFIN, Georgia Gwinnett CollegeFollow

Abstract

Since its inception in 2003, Tesla, Inc. has striven to be more than simply an electric automobile manufacturer. Since its first release in 2008 (the luxury Roadster), the company has introduced several additional high-end models as well as a much anticipated mid-priced model. Its vehicles consistently receive enthusiastic reviews from consumer analysts and industry publications alike. Perhaps as a reflection of its continued innovation and product-line expansion, as well as investor optimism regarding the company’s future prospects, its stock price has risen to extraordinary levels. However, despite all of this apparent success and highly-valued stock, Tesla has generated relatively little profit to date. This research paper analyzes some of the factors that have led to such a high stock valuation. It examines the background of the company from inception to the present, the impact that its charismatic CEO Elon Musk has had on the stock price, and whether or not “herd behavior” could be at play.

Recommended Citation

Cheng, Yun and GRIFFIN, CARROLL (2022) "Tesla vs. its Stock Price: “Herd Theory” at work?," Southern University College of Business E-Journal: Vol. 16: Iss. 1, Article 4.
Available at: https://digitalcommons.subr.edu/cbej/vol16/iss1/4