Tesla stock is still ‘egregiously overvalued’: Analyst

on Dec 9, 2022
  • Roth Capital analyst says Tesla stock should be worth $85 only.
  • Craig Irwin does not see it as more than an automobile company.
  • Tesla Inc is currently trading more than 50% down for the year.

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Shares of Tesla Inc (NASDAQ: TSLA) have been cut in half this year but a Roth Capital Partners’ analyst still does not see them as attractively valued.

The bear case for Tesla stock

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According to Craig Irwin, the leading U.S. electric car manufacturer should not be worth more than $85 a share – that’s down another 50% from here. On CNBC’s “Squawk Box”, he said:

I’ve seen Tesla as egregiously overvalued for about a year and a half. Elon Musk is a very talented executive; Tesla is a very important company but I don’t believe it’s worth more than a company like Toyota.

Part of the reason for the sell-off, especially more recently, is concern that the billionaire chief executive is distracted following his $44 billion buyout of Twitter.

But the Tesla stock is grossly overvalued even without that overhang, Irwin added.

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Tesla is just an automobile company

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Reason why bulls value Tesla stock as more than a typical, run-of-the-mill automobile company is because they see it as much more than that.  

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The idea is that the multinational will eventually turn into an autonomous driving company that will change transportation as we know it or perhaps into a solar business. But Irwin does not buy into any of that.

I think those are false arguments. I don’t see robo-taxis anytime soon. There’s a lot of other things people point to – software etc., I don’t think Toyota, Porsche, Daimler, or someone else can’t do that.

Nonetheless, Tesla had record operating profit in its latest reported quarter as Invezz published here.


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