How Low Can Tesla Stock Go? Analyst Talks 30 A Share
Tesla (TSLA) investors already lost more than $700 billion on the stock this year. How much more can this S&P 500 stock drop? Plenty.
Shares of the electric-auto maker dropped more than 60% this year to 109.66. That wipes out gains going back to 2020. Tesla stock investors, including Elon Musk himself, are down a massive $716 billion this year.
What changed? Investors finally realized Tesla is "now officially a car company," says Nicholas Colas of DataTrek Research. And for that reason, it may deserve to trade like one. And that could mean it's only worth 30 a share — or 72% less than it's worth now.
"General Motors (GM) and Ford (F) have market caps of $49 and $45 billion respectively. Tesla's market cap is $396 billion. Let's say Tesla deserves to be worth GM and Ford combined, for a market cap of $94 billion. That would put TSLA's stock at 30/share," Colas says.
Tesla Stock Shocks S&P 500 Investors
Tesla is already on some investors' "avoid" list in the S&P 500.
"This stock was propped up by a stimulus-filled economy that shot its market cap into an extremely lofty trillion valuation and it really was a 'story' stock as many rallied behind Musk and the product they have," said Ken Mahoney, CEO of Mahoney Asset Management. "While certainly Tesla is still an attractive stock over the long term, with Musk selling so heavily and often, and investors seeing him gear his focus toward Twitter, it is to no surprise why it is down about 60% this year."