Needham & Company Sees 'Irrational Exuberance' in Tesla (TSLA)

Needham & Company analyst Rajvindra Gill reiterated an Underperform rating on Tesla (NASDAQ: TSLA), noting "Irrational Exuberance."

The analyst commented, "While down 12% today, TSLA shares have been parabolic jumping 56% in the last week, 100% in the last month, 112% YTD, and 184% over the last 12 months. In our experience, we've never seen a stock rise that much that fast with such little regard to past fundamentals or track record. TSLA's market cap is currently 3x the larger than the median average of the leading 10 auto OEMs with less than 25% of the projected revenue. While we acknowledge the fundamentals have improved, we remind investors the following: 1) TSLA has never posted a full annual profit since going public; 2) its growth rate decelerated in '19 and 3) gross profit declined in '19. We believe the shares are discounting a "pitch perfect story" with $41BN of revenue and $15 of EPS in 2021."

For an analyst ratings summary and ratings history on Tesla click here. For more ratings news on Tesla click here.

Shares of Tesla closed at $887.06 yesterday.

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