Should You Still Invest in Tesla (TSLA) After it Reached a High of $1,243 per Share?

Claret Asset Management, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. In its fourth-quarter letter, the fund talked about the 11 plus one “Interesting” or “Surprising” things about 2021, and described the past year as “another amazing year that few would have predicted and surprised everyone far more positively than expected”. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Claret Asset Management, in its Q4 2021 investor letter, mentioned Tesla, Inc. (NASDAQ: TSLA) and discussed its stance on the firm. Tesla, Inc. is a Palo Alto, California-based vehicle manufacturing company with a $1.0 trillion market capitalization. TSLA delivered a -5.73% return since the beginning of the year, while its 12-month returns are up by 17.90%. The stock closed at $996.27 per share on January 20, 2022.

Here is what Claret Asset Management has to say about Tesla, Inc. in its Q4 2021 investor letter:

Tesla stock reached a high of $1,243, a 74% increase from its Dec 31st, 2020 price where it was already trading at over 900 times its then earnings. Today, at $960 or so, it is still trading at over 300 times its much-improved earnings. To top it all off, Elon Musk is named Time Magazine’s “Person of the Year” for 2021. By the way, Jeff Bezos from Amazon was “Person of the year” in 1999, just as the stock price peaked at $113 during the Internet Bubble…. Subsequently, Amazon stock price plunged to a low of $5.51 in 2001, a whopping decline of 95%!”

Our calculations show that Tesla, Inc. (NASDAQ: TSLA) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. TSLA was in 60 hedge fund portfolios at the end of the third quarter of 2021, compared to 60 funds in the previous quarter. Tesla, Inc. (NASDAQ: TSLA) delivered an 11.44% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on TSLA in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.