Tesla (TSLA) Stock is Worth $150, Other Companies Have 'Vastly Superior Tech' - Roth Capital Analyst

Craig Irwin, a senior research analyst at Roth Capital, says that shares of Tesla (NASDAQ: TSLA) are immensely overvalued as his price target for the EV company is set at $150.00 per share.

Elon Musk’s company must do more to justify its premium valuation, Irwin says. Tesla shares closed at $691.05 yesterday, reflecting a business valuation of $663.3 billion.

This valuation is close to what the entire US and European auto markets are valued at, says Irwin, while Tesla is only a minor player in the big picture.

“For me, I see this as a market dislocation, I see this as something avoiding analysis of the fundamentals and I think there’s room for many successful companies in the market. People are just assuming that Tesla has no competition when they put this kind of lofty valuation on the company,” Irwin told CNBC Asia on Tuesday.

On Friday, Tesla topped market expectations for produced and delivered vehicles for the fourth quarter, but Irwin says that TSLA’s stock price has already priced in these upside surprises.

“They would really need to deliver on the robotaxis, the fully autonomous vehicles,” the analyst added.

In this regard, other companies are going all-in and some of them have “vastly superior technology,” says Irwin.

On the other hand, Elon Musk’s company has made good steps towards improving its outlook, with an expected entry into India and prospects in China seen as positive catalysts for the stock.

Irwin’s stance on TSLA is completely different to Wedbush analyst Dan Ives, who recently upgraded the stock to “Outperform” from “Neutral” with a price target of $1,000.00.

"We now believe Tesla could exceed 850k deliveries for the year with 900k a stretch goal, despite the chip shortage and various supply chain issues lingering across the auto sector. While the EV sector and Tesla shares have been under significant pressure so far this year, we believe the tide is turning on the Street and the "eye popping" delivery numbers coming out of China cannot be ignored with the trajectory on pace to represent ~40% of deliveries for Musk & Co. by 2022,” the analyst wrote in a note.

Tesla stock price trades 0.3% higher in pre-open Tuesday.

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