TheStreet’s Market Recon columnist Stephen Guilfoyle thinks that Tesla TSLA could take at least 12% to 15% haircut from current prices, and “it could be a lot more than that [because] this is a stock that loses money.”
“I’m not short Tesla, but if I were forced at gunpoint to take a short position in any stock, it would probably be Tesla,” Guilfoyle said during TheStreet’s July Trading Strategies roundtable. “I think it’s wildly overvalued. I don’t think they’ll ever meet their goals of production or sales.”
But one positive that Guilfoyle noted is Tesla CEO Elon Musk’s uncanny ability to raise money in the market, which probably means the company “will be able to stick around for a long time. So if there is an end game where they are profitable, they do have longevity. But I think you could make money on the downside for the short term.”
Tesla shares rose 3.5% Tuesday to close at $327.22.
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