Tesla Inc shares TSLA,
On Tuesday, Bernstein analyst Toni Sacconaghi fell more than 2% in pre-market trading and reduced the value of the shares to underperform the market, maintaining a target price of $ 900. “Despite From our relatively optimistic stance on the evolution of electric vehicles, and the structural advantages we believe Tesla may have, we find it difficult to justify Tesla’s current assessment even in our most optimistic / imaginative scenarios, “he wrote in a note to customers. . Saccaonaghi said he understood Tesla’s bullish case, which involved the company’s market leadership in a poorly penetrated industry and Tesla’s margin expansion potential, but called the current valuation “mind-blowing” as “Tesla now even It seems expensive compared to large-cap growth technology. ” He said the company’s business value is currently the same as that of Toyota Motor Corp. TM,
and Volkswagen AG VOW,
while those companies make a collective of 20 million cars against Tesla’s 500,000. “To be clear, we are not asking investors to cut Tesla shares, which, given the recent price push, would probably be equivalent to recommending investors to stand in front of a freight train,” Saccaonaghi wrote. . Instead, “he simply observes that over a 12-month time horizon (and even more so, over a multi-year time horizon), it has become increasingly difficult for us to imagine how Tesla stocks can continue to outperform the S & P500, reflecting our broader skepticism about the sustainability of the superior performance of growth in the technology sector amid the ten-year widening of valuation spreads. ” Tesla shares have gained 268% so far this year as the S&P 500 SPX,
It is up 0.3%.
.
