Analyst Says Tesla Valuation Makes ‘Zero Sense’ Amid ‘Atrophying’ Fundamentals – ‘What Do You Own Here?’

Stephen Weiss, the Chief Investment Officer and Managing Partner of Short Hills Capital Partners, said in a recent program on CNBC that Tesla’s valuation makes “zero, zero sense.”

“You can’t disagree with the fundamentals. The fundamentals have been atrophying. But it’s a cult stock and I’ve not been shorted. I short it periodically here and there. But valuation makes zero zero sense. Robotics, robots, humanoids. It’s a crowded space already. But you’ve got a company, another company, private company literally has no revenues that’s now trying to raise capital at USD38 billion, you know, and so it’s bizarre and that’s what people looking for. The next great thing. Tesla. Tesla’s sales have atrophied also. So robotaxis, that’s crowded before they even launch them. So what do you own here?

Tesla’s recently reported strong Q3 deliveries, as expected, amid a temporary boost due to pull-forward demand, due to the end of EV tax credits. Tesla’s latest announcement of cheap models failed to impress the market. It also shows Tesla is losing pricing power amid intense competition. Cheaper models are also expected to negatively impact its auto margins. In Europe, the new budget models will face intense competition from European and Chinese brands which are already offering several models under or near USD30,000.

In 2024, Tesla’s global deliveries fell for the first time, while the company is expected to see another 10% this year, Reuters reported. China’s BYD recently reported a whopping 800% increase in UK sales, and the company is beating Tesla in most of Europe.

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