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Wall Street Tesla bears have gotten clobbered – but the bulls still have to deal with some big questions (TSLA)

February 28, 2018

If you had bought Tesla stock right after the company’s 2010 IPO, you’d be sitting on a massive return, more than 1,000%.

But just because Tesla, now with a market capitalization of about $60 billion and a share price hovering around $350, has rewarded investors, that doesn’t mean there isn’t a wide range of opinion about what CEO Elon Musk’s 14-year-old company should be worth.

Tesla bears and Tesla short-sellers have been pulverized over the carmaker’s publicly traded history. But their argument hasn’t lost its validity: Tesla, who has rarely posted profitable quarters, is currently incinerating cash at a furious rate. It has also struggled to launch its mass-market Model 3 vehicle, and has a balance sheet that’s loaded up with debt following a 2016 merger with SolarCity.

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