---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/100000000882563.md"
description: "Never short a great company that sells at an expensive valuation. $Tesla(TSLA.US) is a great company with best-in-class technology, leverages key secular megatrends that generate true first movers’ advantage, has a significant manufacturing cost advantage, and is run by a visionary leader who is a magnet for engineering talent. But TSLA trades at an extended valuation (220x forward earnings vs +35% long-term earnings growth), which gives investors reason to not own it, but not a reason to short it.  There are plenty of bad companies that have weak products or competitive positions, can’t leverage key secular megatrends, have non-compelling brands, a high cost manufacturing structure, or management teams that can’t execute that I can short instead."
datetime: "2026-09-02T09:10:10.000Z"
locales:
  - [en](https://longbridge.com/en/topics/100000000882563.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/100000000882563.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/100000000882563.md)
author: "[Gary Black Tracker](https://longbridge.com/en/profiles/17077344.md)"
generator: "portal-rs"
---

# Never short a great company that sells at an expen…


### Related Stocks

- [TSLA.US](https://longbridge.com/en/quote/TSLA.US.md)

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**