Shorts want the market to "figure it out quickly" on par with children's tolerance for long trips strapped in a device suitable for space exploration. If Musk sells the long-term dream, the trip may feel like sitting in the back of a 1971 Oldsmobile station wagon traveling along at 55 MPH before the days of DVD players wondering "are we there yet"?

Absent Musk's ability to cultivate a solid decade-long investor mentality, which is rare on Wall Street, shorts will receive a "yes," and likely before 2014. For new investors, the only reason to buy is if you think the potential price appreciation outweighs the risk. With the stock now at around $118, that seems unlikely unless you're an active day trader.

Bottom line: Tesla is trading at a nose-bleed valuation while its chart appears to be extended and close to exhaustion. Investors should fasten their seat-belts and use caution or risk leaving their portfolios in the dust.

At the time of publication the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Robert Weinstein currently blogs, mentors traders, and writes several weekly columns in Rocco Pendola's Option Investing newsletter from his home in northern Wisconsin. Robert tends to focus on the psychological importance of goals, risk mitigation, emotion, and relatively short term market exposure. With nearly 30 years of studying and investing experience, Robert has experienced the many ups and downs in the financial markets and uses the knowledge gained to maintain balance. Robert believes the best way to make money investing is to avoid losing it. The best way to avoid losing is to know what emotional traps lay in the path of investors and learning how to avoid them. Robert is a voracious reader of financial related books often completing more than one book a week while not trading or writing. Robert contributes to his blog at paid2trade.com on a regular basis with an emphasis on studying behavior finance.


If you liked this article you might like

Wall Street Deflates in Pullback After Fed Excitement, No Records for Dow

Your Guide to Making a Lot of Money on the Driverless Car Boom

Sorry Elon Musk but Artificial Intelligence Grows Jobs: Domino's Pizza CEO