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Moas On Tesla: 'I Wouldn't Pay $180 For This Thing'

Moas On Tesla: '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 (NYSE: F). In fact, the revenue of GM and Ford is 20x times of what Tesla is," Moas told CNBC.

"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 added.

Commenting on the 350K orders, the company has received so far for its Model 3, Moas said, "I am very, very skeptical. They had trouble meeting expectations of 16000 units last quarter. If people tell me, they are going to go 100,000 units to 500,000 units within four years, I would knock that money on that. I think there is lot of places in the stock market to put your money other than Tesla."

Related Link: This Analyst Is Selling Tesla

It's All Relative

He continued, "Yes it could go up 20 or 30 percent in the next few years, but it will probably go down 20 or 30 percent before that. There were hundreds of names in the stock market that have 50 percent upside if we look out a few years, with negligible downside. That would be a better place to park your money than to put in Tesla at $260."

Moas 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 concluded.

"I wouldn't pay $180 for this thing."

Moas 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. He has a success rate of 68 percent, with an average return per recommendation of +4.7 percent.

Image Credit: By Steve Jurvetson [CC BY 2.0], via Wikimedia Commons

Latest Ratings for TSLA

Jan 2021WedbushMaintainsNeutral
Jan 2021Edward JonesInitiates Coverage OnHold
Jan 2021Credit SuisseMaintainsNeutral

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