Tesla's stock is way overblown and only worth $150, analyst says

It's as if the market thinks it is the only EV maker in the world, he says.

| More on:
red car on a road with the city in the background and cloudy ski

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Even though Tesla (NASDAQ: TSLA) is a "minor player" in the industry, one analyst says, its stock is so overvalued at $700 per share that its $660 billion valuation is almost equivalent to the combined valuation of the entire U.S. and European automotive markets. 

According to Roth Capital analyst Craig Irwin, the market has lost sight of fundamentals when it comes to the electric vehicle (EV) maker. Although it is doing well and is a market leader, "People are just assuming that Tesla has no competition when they put this kind of lofty valuation on the company," Irwin said yesterday on CNBC's Squawk Box.

He believes the stock is worth no more than $150 per share.

All the good news from Tesla's recent first-quarter deliveries report is priced into the stock, the analyst said. 

The EV maker reported producing 180,338 vehicles in the first three months of 2021 and delivering 184,800, well ahead of the 168,000 vehicles Wall Street was expecting Tesla to deliver.

The production numbers consisted solely of Model 3 sedans and Model Y crossover SUVs; it made none of its luxury Model S sedans and Model X SUVs. But it plans to ramp up their production.

To justify its current stock price, Irwin said, Tesla needs to come out with more-advanced vehicles. "They would really need to deliver on the robo-taxis, the fully autonomous vehicles," he said, but instead, rival EV makers are introducing "vastly superior technology."

So far in 2021, Tesla stock is down 2%, but the EV maker's shares are up 620% over the last 12 months. "I see this as a market dislocation," Irwin said.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Should you invest $1,000 in Web Travel Group Limited right now?

Before you buy Web Travel Group Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Web Travel Group Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on International Stock News

Business woman with her arms folded stands in front of multiple screens.
International Stock News

How did the Magnificent 7 fare this reporting season?

Let's explore the highlights.

Read more »

A man looking at his laptop and thinking.
International Stock News

Amazon: A good quarter but some concerns

Here's our initial take on Amazon's financial report.

Read more »

Man looks up at apple on his head.
International Stock News

Apple: Growth in a difficult environment

Here's our initial take on Apple's financial report.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
International Stock News

Why Microsoft stock popped this week

Microsoft stock was up by 9.5% this week.

Read more »

Electric vehicle such as Tesla being charged at charging station.
International Stock News

Tesla searches for Musk successor: Why this matters

Could Elon get the chainsaw from his own board?

Read more »

customers inside and outside a Microsoft retail store
International Stock News

Microsoft shares earnings report: What's the verdict?

Investors moved the Microsoft share price significantly.

Read more »

Warren Buffett
International Stock News

Countdown to Berkshire's AGM: What do investors expect to hear from Warren Buffett this year?

All eyes will be on Omaha, Nebraska this weekend.

Read more »

A smiling woman holds a Facebook like sign above her head.
International Stock News

Meta surges on blockbuster earnings report

It's a good day to be a Meta investor.

Read more »