Tesla, the famed electric carmaker founded by Elon Musk, is not universally loved on Wall Street at the current share price. Ahead of a much-trailed strategy update on battery technology later on 22 September, one longtime fan of the stock has a warning for investors.
Kallo’s verdict echoes that of Tesla’s second largest shareholder, Baillie Gifford, whose partner James Anderson has argued that on that timescale the company is reasonably valued. Anderson wrote in a recent fund report: “The vision and ambition at Tesla have always been clear but at times the company has struggled with execution. That has changed. We wish we could find other big companies that were making such progress in the move to a sustainable energy economy.
READ How Tesla investor Baillie Gifford rakes in soaring returns: ‘There are fundamental changes afoot’ Kallo downgraded Tesla from “outperform” to “neutral” on 9 January, on valuation concerns. He has a current price target — where he thinks the stock should be trading — at $332. “When Tesla went from $25 to $180, from 2012-4, we saw that people started discounting five years or seven years ahead. It took 5-7 years to grow into that valuation. I could argue with the valuation right now, people are doing that: they are looking ahead to 2028, 2030.
Lol markbspiegel
Did they say the same thing about an online bookstore?
Nonsense. Was this guy also saying this 2 years ago when Tesla was $60 (on a split-adjusted basis)? $TSLA BatteryDay