THEORY AND PRACTICE OF SECURITIES TRADING

Carry out fundamental analysis and technical analysis and reflect on finance lab simulation and trading.

Section A: Fundamental Analysis

Tesla stock share price had a 10-fold rise from Jan 2013 to June 2017. Investment analysts did not agree on the intrinsic value of Tesla stock. Please do research online and answer the following questions based on analysis of the company, its sector and the economy.

a. What were the arguments in favour of the high price of Tesla stock?
b. Why did some people argue that Tesla stock were in a bubble?
c. Do you think Tesla stock is currently overvalued, fairly valued or undervalued? Please explain.

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