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The Tesla Surge Early Reaction: Jefferies Says To Hold Off On Celebrating, Horwitz Says To Sell While Stock Higher

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The Tesla Surge Early Reaction: Jefferies Says To Hold Off On Celebrating, Horwitz Says To Sell While Stock Higher

Electric automaker Tesla Inc (NASDAQ: TSLA) surprised investors with an unexpected third-quarter profit Wednesday afternoon.

One Street analyst is urging investors not to celebrate yet, while one strategist said Tesla's stock is among the most overvalued in the market.

Jefferies: Don't 'Scream Victory Yet'

Tesla did report "good" metrics across the board in its Wednesday report, while cash flow was "solid," Jeffries analyst Philippe Houchois said on CNBC Thursday morning.

In conjunction with the report, Tesla said its Model Y car is running ahead of schedule and its Gigafactory in Shanghai is ready for production.

This announcement marks a reversal from Tesla's prior reputation of "being late on everything" and could mark a "dramatic change" in the running of the business, the analyst said. 

Investors should keep in mind that Tesla does have a track record of reporting a good quarter followed by a poor quarter, he said. 

"Let's not scream victory yet."

BubbaTrading's Horwitz: Overvalued, Overhyped

Tesla's stock is among the most overvalued and overhyped in the entire stock market universe, Todd Horwitz of BubbaTrading said on CNBC's "Street Signs" Thursday morning. Tesla is led by a "genius" CEO in Elon Musk, but the company is unlikely to live up to its own expectations, he said. 

Horwitz also said he will certainly be a seller of the stock Thursday if it holds on to Wednesday's 20% after-hours gain.

"I don't think it has anywhere near the value that's trying to be priced in to it," he said.

The stock was trading up 17.12% at $298.29 at the time of publication. 

Related Links:

Tesla Is By Far The Most Profitable Short Trade Of 2019

Tesla Analysts: While Short Of Expectations, Q3 Delivery Number Is Pretty Good

Photo courtesy of Tesla. 

Latest Ratings for TSLA

DateFirmActionFromTo
Jan 2020ReinstatesSell
Jan 2020DowngradesOutperformNeutral
Jan 2020MaintainsNeutral

View More Analyst Ratings for TSLA
View the Latest Analyst Ratings

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