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New Paper on Tesla by Tobias Klinge, Stefan Ouma and Reijer Hendrikse: High Stock Prices Not Always an Indicator of Business Success
Tobias Klinge and Stefan Ouma, along with colleague Reijer Hendrikse from Frije Universiteit Brussel, just published a new paper in Finance and Society, where they demonstrate that stock prices do not necessarily reflect operational success, using Tesla as an example. They discovered that despite impressive increases in Tesla's stock prices, the company's achievements in product innovation, production capacities, and market expansion do not always correlate directly with its stock price performance. This leads to a discrepancy between market valuation and fundamental corporate data.
Read more here.