Tesla Inc (NASDAQ: TSLA) is often cited as the poster child for the irrational exuberance of retail investors.
Notwithstanding the COVID-19 market crash, the stock for the electric car maker has increased 660% times since the start of 2020.
That dizzying ascent has made many people rich. This includes chief executive Elon Musk, who in January briefly overtook Amazon.com Inc (NASDAQ: AMZN) founder Jeff Bezos as the planet’s wealthiest person.
Tesla is now worth more than the 8 biggest traditional car makers combined, even though it produces a fraction of the vehicles they do.
Critics say this is the worst example of an overvalued growth stock. Foolhardy retail investors are pumping money into speculative businesses that are just…