How good can Tesla really be?
Hedgeye Industrials analyst Jay Van Sciver answers that question in the clip above and maintains that TSLA is richly valued way beyond any other comparable car manufacturer. He explains that if Tesla were valued like some of the world’s biggest car companies, the stock price would plummet.
“If Tesla were valued like BMW, its shares would trade between 10 and 20 bucks. If it were valued like Toyota, it would be less,” Van Sciver explains.
“Those are really good companies. There are issues with Teslas that don’t happen with Toyotas. Does it belong at that valuation?”
Van Sciver does concede that Tesla’s brand is “better” than those two companies right now, but what happens to its valuation when the quality of that brand begins to fade?
Watch the full clip above for more.