23 May 2016 at 14:10 GMT
Peter Garnry, head of equity strategy at Saxo Bank, examines Elon Musk’s electric car manufacturing company, Tesla.
The US company has raised $1.5 billion in fresh capital to support its growth plans. These involve building a gigantic factory in Nevada to increase production from 60,000 to 500,000 cars per year.
Telsa has also announced huge pre-sale orders of its Model 3 car. But Garnry believes, at $220 per share, Tesla’s downside risk is bigger than the upside with high expectations on the company’s performance.