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 Tesla right now?

Before you buy Tesla 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 Tesla 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

Warren Buffet
International Stock News

7 ways Warren Buffett changed my investing approach

I'm a big fan of Warren Buffett, and have been for many years.

Read more »

iPhone with the logo and the word Google spelt multiple times in the background.
International Stock News

Down 12% this year, should you buy Alphabet stock?

The Google owner is underperforming the Nasdaq Composite, which has rallied in recent weeks.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
International Stock News

Missed out on Apple in 2012? Buying Nvidia stock today could be your second chance

By now, it's clear that artificial intelligence (AI) is the next major technology platform.

Read more »

Robot humanoid using artificial intelligence on a laptop.
International Stock News

3 reasons Amazon stock looks like an incredible bargain right now

Here are three reasons Amazon stock looks like a rare bargain at current levels.

Read more »

Legendary share market investing expert and owner of Berkshire Hathaway Warren Buffett
International Stock News

Warren Buffett's $347 billion warning to Wall Street is ringing out loud and clear. History says this happens next.

Let's take a look.

Read more »

Warren Buffet
International Stock News

Warren Buffett nearly made his biggest investment since 2022. Here's what's holding him back.

Buffett said Berkshire came close to spending $10 billion, and he'd happily spend $100 billion.

Read more »

Happy man working on his laptop.
International Stock News

Here's why Amazon is a brilliant buy now (Hint: It's not e-commerce)

Fortunately for investors, cloud computing is going through a massive boom.

Read more »

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

With Warren Buffett stepping down as CEO, will Berkshire Hathaway sell Apple stock?

Or will it find something else to invest in? Let's take a look.

Read more »