Electric car maker Tesla (TSLA) had all the momentum in 2013. That was when the chart comparison to 1929 signaled smooth sailing. It was just that for Tesla until a series of car fires took the wind out of the sails. As if on cue, the company has rebounded from that PR hit.
Now the stock is near its all-time high. That’s not a good place to be if the market is going to crash. Don’t get me wrong, I like the idea of Tesla, but I just wouldn’t own the stock today. Shares are quite expensive relative to expected profit growth. Analysts expect the company to grow profits by 156% in 2014, but trade for 124 times 2014 estimated earnings. That’s too steep and quite risk if the chart overlay to 1929 proves correct.