Revolutions that start in the garage are nothing new. The one-car shed in which David Packard and William Hewlett began the partnership that would grow into Hewlett- Packard Co. is known as the birthplace of Silicon Valley.
[np_storybar title=”The case against the case against Tesla Motors Inc: Is its US$25 billion valuation justified?” link=”http://business.financialpost.com/2015/03/04/the-case-against-the-case-against-tesla-motors-inc-is-its-us25-billion-valuation-justified/”]
Tesla has seen better days: Fourth-quarter results were full of bad surprises, the company’s prototype electric SUV has suffered multiple delays, and crashing oil prices weaken the case for electric vehicles. The stock has tumbled 30% since September.
For weeks, analysts have been bull hunting. “Things are far from rosy,” Barclays’s Brian Johnson wrote to investors. Bank of America’s John Lovallo says Tesla’s stock is overpriced—by a staggering 70%. The basic argument goes something like this: Recent sales have been disappointing, and the cost of Elon Musk’s ambition is about to go up as he builds…
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