Analyst Estimates Tesla Stock Worth Only $150, Just 22% Its Current Market Value: 'Minor Play' in US and EU Automotive Markets

Urian B., Tech Times 06 April 2021, 05:04 am

Tesla stock has become one of the highlights of 2020 with its massive growth even propelling Tesla CEO Elon Musk to the richest man in the world for a period, beating Amazon CEO Jeff Bezos' long stand. However, it seems like not everyone is particularly positive about the Tesla stock value.

Analyst: Tesla Share Price

According to the story by CNBC, Craig Irwin, a senior research analyst at Roth Capital says that Tesla stock is currently overvalued and worth just $150. He noted that the electric carmaker should have to do more in order for them to be able to justify its current share price of around $700.

Tesla shares had recently closed at $691.05 overnight as all of investors cheered the popular EV maker's forecast-beating deliverice. Irwin then told CNBC's Squawk Box Asia on Tuesday that the possibility of Tesla beating the estimates is now "clearly already in valuation."

Tesla Market Valuation

Tesla valuation is now around $660 billion, which is very close to the total size of both the US and European automotive markets. However, Irvin still notes that the EV company is just a "minor player" in the whole industry.

Irwin then noted that he sees this as a current market dislocation, and he sees this as something that avoids analysis of the fundamentals. He also notes that he thinks that there is still a lot of room for other successful companies to dominate the market. He said that people are currently just "assuming" that Tesla remains without competition when they put out this particular kind of lofty valuation on the popular company.

Tesla Delivers Over Expectations

Irwin said that he is still very bullish on the total sales outlook of EVs wherein Tesla is the current market leader. Recently on Friday, Tesla had reported that it was able to deliver 184,800 vehicles and was also able to produce 180,338 cars during the first quarter of 2021.

Analysts were just expecting the company to be able to deliver a smaller 168,000 vehicles during the particular period according to the previous estimates made by FactSet on April 1 according to MarketWatch. The company's shares had jumped by yet another 7% on Monday.

Tesla Believes Other Companies Have 'Vastly Superior Technology'

Irwin, however noted that he still expects "good things going on" for the popular Tesla citing an expected entry into India as well as prospects in China as factors for assisting in Tesla's outlook. He said that clarification, however, is still needed to justify its current share price.

The analyst then noted that they would then need to deliver on the expected robotaxis, the fully autonomous vehicles. He also added that Tesla seems like it is pulling back in these fields while there are other companies that are currently coming out with some "vastly superior technology."

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Written by Urian Buenconsejo