NASDAQ:TSLA

NASDAQ:TSLA, Tesla Motors Inc (NASDAQ:TSLA) stock is jumping on continuous basis. Tesla’s Model S became the icon of the industry. It is not only due to an awesome electric car, but also acknowledged widely as best car manufacturer. Tesla’s Model S has recognized as a superb machine. It is not only considered as a luxury car, but a “performance car”. According to all reasonable standards, Tesla is highly overvalued at the moment. The stock price has surged to an insane level. Currently, the stock price is at $193.37, after reaching an all time high on Tuesday.

BofA Merrill Lynch believes that company’s true stock value is almost $45 today. BofA Merrill Lynch wrote that they continue to see company’s shares as vastly overvalued and maintain their $45 PO, on the basis of a 2015e EV/EBITDA multiple of almost 12X, currently 12.7X.

Currently, the company is worth almost 44% similar to General Motors Company (NYSE:GM)’s worth. Christian Science Monitor wrote that GM has manufactured over 450 million cars in its 105 years; however Tesla has produced almost 25,000 sedans over 10 years.

BofA has written one more quote that they forecast that Tesla Motors Inc (NASDAQ:TSLA)’s current share price indicates almost 628K vehicle sales in 2020 compared to a forecast 21K in 2013. In their view, creating luxury margins on a mass market vehicle is expected to prove extremely challenging, representing another hurdle to the bull case.

Shai Agassi recently made the point that the company is rewarded for two reasons. One is that that electric cars will blow up, taking a large portion of the automobile market. Second is that company is expected to dominate that market. Both of these things place the company’s brand in a very good place. In many ways, Tesla resembles Apple Inc (NASDAQ:AAPL). Tesla has opened up a whole new market like Apple. The company is doing business in a different way that gives it rockstar status and consumer appreciation.