Tesla Motors Inc (TSLA) Worth a Mere $5 Billion to $10 Billion, Five Times Overvalued Says Analyst

Tesla Motors Inc (NASDAQ:TSLA)’s rosy valuation of just over $35 billion is generally accepted as fair by most analysts. Vilas Capital CIO and CEO John C. Thompson is not one of them. Speaking on CNBC yesterday, the analyst said Tesla Motors Inc (NASDAQ:TSLA) is greatly overvalued, comparing their valuation to several other companies and expressing incredulity over it.

Tesla Motors Inc (NASDAQ:TSLA)

“It’s worth 5 or 10 billion dollars, not 35 billion. I mean Tesla’s got a bigger market cap than John Deere. It has twice the market cap of Fiat, and as Phil just said, Fiat owns Chrysler, Maserati, Ferrari, and obviously Fiat. You know, it’s such a big market cap that I don’t see how they can, in any reasonable time-frame, live up to that valuation,” Thompson said.

Thompson is clearly befuddled by Tesla Motors Inc (NASDAQ:TSLA)’s valuation, which was defended in the same segment by Cole Wilcox of Longboard Asset Management, who have recently taken a position in Tesla Motors Inc (NASDAQ:TSLA) again, as much for the stock’s clear upward momentum, as for any sense that they’ll actually live up to that valuation one day.

“We have to remember, the markets can stay irrational a lot longer than the short sellers can stay solvent. So for us, we’re looking and came back into the stock, we made a lot of money on the move from 35 to 200, we stepped aside, we’re back in it, and it’s not a valuation trade, it’s ‘I like stocks that go up and make new highs’, and you know, this thing seems to have a lot of juice, and you’re going into a new product cycle, the Model X,” Wilcox said.

Tesla Motors Inc (NASDAQ:TSLA) enters the day at a hefty $281.19, giving it a market cap of $35.41 billion after a 6.57% gain yesterday on the strength of a $400 price target revealed by Stifel Nicolaus, which previously had a hold rating on the stock.

Disclosure: none

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!