: 'I Wouldn't Pay $180 For This Thing'
Ronnie Moas of Standpoint Research said the valuation of Tesla Motors Inc (NASDAQ: TSLA) is "too high."
"I think the valuation of Tesla
is completely disconnected from what my analysis is showing me.
The market is treating Tesla
as if it is an equivalent of a General Motors Company
(NYSE: GM) or Ford Motor Company
In fact, the revenue of GM and Ford
is 20x times of what Tesla
"On any metrics you look at it, the market is placing a best case scenario, disregarding all of my threats and concerns that I have looking out for a few years.
I think the lot of the recent buying was due to short covering," he
Commenting on the 350K orders, the company has received so far for its Model 3, Moas
said, "I am very, very skeptical.
noted that even if Tesla
gets to 500K units in 2020, GM and Ford
combined will have 10 million units.
On a sarcastic note, Moas
said, "You could buy Kansas City Southern
(NYSE: KSU), Fluor Corporation
(NEW) (NYSE: FLR), Goodyear Tire & Rubber Co
(NASDAQ: GT), Bed Bath & Beyond Inc.
(NASDAQ: BBBY) and Harley-Davidson Inc
(NYSE: HOG) with the money it would cost you to buy Tesla right now."
"Again, it is a company that has not generated a profit and I don't think the competitors of Tesla
will remain silent and then Tesla is there launching in five years and that's not going to happen, they do have competition," he
"I wouldn't pay $180 for this thing."
downgraded shares of Tesla
to Sell and $180 price target on the stock, which is currently down 2.47 percent to $250.85.
According to TipRanks, Moas
is rated No.1 and ranked 71 out of 3,854 analysts.
has a success rate of 68 percent, with an average return per recommendation of +4.7 percent.