Tesla, Inc. TSLA's valuation has been a subject of much debate among analysts. The EV manufacturer's market cap exceeds the combined valuation of most automakers.
The fair valuation of Tesla shares could be around $150, and the biggest catalyst that could take the EV maker's stock there is likely to be the launch of an Apple, Inc. AAPL Car, potentially in 2024, Roth Capital Partners analyst Craig Irwin said in an interview to Yahoo Finance.
The analyst expects the Apple Car launch to be something like Volkswagen AG VWAGY-owned Porsche's launch of the Taycan.
Apple is likely to use bleeding edge technology in the car, which is typical of the company, the analyst said.
Related Link: What to Expect From Tesla's Annual Shareholder Meeting Thursday
Other downside risks include the abundance of brands launching in the market, Irwin said.
Claims that Tesla has an edge on battery prices will not hold, as the EV maker sources much of its batteries from elsewhere, he added.
"These things, as these become evident, I think, are key catalysts for people reallocating money elsewhere," Irwin said.
Regarding his expectations from Tesla's shareholders' meeting, Irwin said an announcement regarding a change in domicile to Austin, Texas or of the first production coming off the Austin line is likely.
The analyst also said he does not consider the Cybertuck a big deal. There are other better options coming from the other big names, companies doing IPOs right now and other companies having established businesses launching EVs, he added.
Tesla shares gained 1.39% Thursday, closing at $793.61.
Related Link: Why This Analyst Thinks Tesla Stock Is Worth Far Less Than Its Current Valuation
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
