This Analyst Is Selling Tesla: The $60 Spike Was Just Shorts Exiting Their Positions

Ronnie Moas of Standpoint Research downgraded shares of Tesla Motors Inc (NASDAQ: TSLA) on Thursday afternoon. The firm now has a Sell rating and $180 price target on the stock. The expert will appear on CNBC on Friday, to explain the reasons behind the demotion; however, Moas shared some comments (from a report he sent to clients) with Benzinga.

With the stock up about 70 percent since February 8, shares seem once again overpriced, Moas started by saying. The shares already failed to break $280 in September 2014, and then reversed below $190 in March 2015; they once again tested the $280 resistance in June 2015, and, yet again, reversed to $150 in February. The stock is now trading around $260, and Moas believes that, “a third run at $280 will end in failure; a reversal; and break below $200.”

So, what drove the stock up? One might ask.

Well, Moas believes the move was fueled by short covering, and not by bulls – even though news about the Model 3 could be considered good.

The expert went on to compare Tesla with other automakers. The electric vehicles manufacturer may hit $15 billion in sales by 2018; meanwhile, General Motors Company (NYSE: GM) is at $150 billion. However, the market is treating them almost as equals in terms of market cap, Moas pointed out. But, Tesla is not Apple Inc. (NASDAQ: AAPL), nor Amazon.com, Inc. (NASDAQ: AMZN), so the market shouldn’t treat it as such, he added.

In fact, the market is treating Tesla as if it sold 1 million units per year, when it is actually selling 100,000, Moas continued. The company’s market cap now surpasses that of Porsche, Mazda, Ferrari and Fiat combined, and three times that of Peugeot.

With such an over-valuation, Moas recommends Selling the stock, which he sees trading around $180.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.