Analyst: Tesla Is Severely Overvalued And Its Stock Price Will Be Cut Twice In The Future

The debate surrounding Tesla's valuation has always been the focus of the market, with bulls and bears tit-for-tat. After Tesla announced strong delivery data last week, many investment banks raised Tesla's target price, but there are still some bearish voices in the market that the Tesla stock price bubble is too big.

Wall Street investment bank Roth Capital senior research analyst Craig Irwin (Craig Irwin) said on Tuesday that Tesla's current share price has been severely overvalued, and its reasonable price should be around $150 per share. Based on Tesla's closing price of $691.62 on Tuesday, Irving believes that Tesla's stock price will be cut twice in the future.

Just a "little player"

The current market value of Tesla is more than $600 billion, which is equivalent to the sum of the next few auto giants and more than three times the market value of Toyota. However, Irving emphasized that Tesla is just a "small player".

Irving believes that this is actually a kind of market dislocation. Tesla’s stock price has been separated from the fundamental analysis. There is still room for other successful companies in the market. Tesla is not without competitors. Volkswagen and other traditional auto giants are Powering electric vehicles.

In addition, Irving did not give too many positive comments on the fully automated driving that Musk has been vigorously promoting. Tesla does need to launch fully autonomous vehicles, but the current situation is that Tesla's autonomous driving technology is not yet mature and Other automakers are also vigorously developing this technology.

However, Irving is actually optimistic about the prospects of electric vehicles and believes that Tesla is also facing some positive factors, including the optimistic prospects of the Chinese market and the imminent entry into the Indian market. But even so, Tesla has to do more work to justify the market value of more than $600 billion.

There are also many optimistic voices

It should be noted that Tesla announced strong delivery data last Friday. In the first quarter of this year, 184,800 electric vehicles were delivered and 180,300 vehicles were produced. The average analyst expectation is to deliver 168,000 vehicles. Stimulated by the news, Tesla's stock price rose by 7% on Monday, but it still fell by about 2% this year.

Therefore, there are also many bullish voices in the market. After the announcement of exceeding-expected results, many investment banks such as Wedbush and Jefferies raised Tesla's target price or performance expectations. Wedbush analyst Dan Ives raised the 12-month target price from US$950 to US$1,000. In a long-term bull market scenario, Tesla’s stock price may even reach US$1,300.
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