NYU's 'Dean of Valuation' on Tesla's massive run: The virus 'handicapped' its competition

Tesla CEO Elon Musk speaks at an opening ceremony for Tesla China-made Model Y program in Shanghai on Jan. 7.
Aly Song | Reuters

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Tesla's unstoppable run this year is largely driven by the coronavirus pandemic, which has caused disproportionate damage to older, more capital-intensive automakers, according to Wall Street's valuation guru.

Shares of Tesla have exploded lately, soaring 30% this month alone and bringing its 2020 gains to a whopping 230%. New York University professor Aswath Damodaran, sometimes called the "Dean of Valuation," called Tesla a "story stock," meaning its prices are not driven by news events or fundamentals.