Tesla (TSLA) shares rose by nearly 700% in 2020, and the year was capped off by their entry into the S&P 500. The “ludicrous speed” continued into 2021 — where shares went up another 18%.
That means the automaker’s price-to-earnings ratio is an eye-rubbing, nose-bleeding 1,601. For context, the P/E of the S&P 500 is 30, itself, well above the historical average of 15. The next-highest tech valuation in the index belongs to Western Digital (WDC), with a P/E of 860.
All of which is to…
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