Despite Tesla (NASDAQ: TSLA) is a “minor player” in the industry, says one analyst, whose stock is so overvalued at $ 700 a share that its $ 660 billion valuation is almost equivalent to the combined valuation of the entire US and European auto market.
According to Roth Capital analyst Craig Irwin, the market has overlooked fundamental factors when it comes to the electric vehicle (EV) manufacturer. Even though the company is doing well and is the market leader, “people just assume that Tesla has no competitors when they rate the company so highly,” Irwin told CNBC yesterday. Squeak box…
He believes that a share is worth no more than $ 150 per share.
All the good news from Tesla’s recent Q1 shipments report has already been factored into the stock price, the analyst said.
The electric car maker said it produced 180,338 vehicles and delivered 184,800 vehicles in the first three months of 2021, well over the 168,000 vehicles Wall Street expected from Tesla.
Production numbers consisted exclusively of Model 3 sedans and Model Y crossovers; it has not produced any of its Model S luxury sedans and Model X SUVs. But he plans to ramp up production.
To justify the current value of the stock, Tesla needs to make better cars, Irwin said. “They will really need to supply robotic taxis, fully autonomous vehicles,” he said, but instead, competing EV makers are adopting “significantly better technologies.”
So far, Tesla shares are down 2% in 2021, but shares in the electric car maker are up 620% in the past 12 months. “I see this as a market disruption,” Irwin said.
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