Tesla is the world's most dangerous company for investors. This opinion was expressed by the head of the analytical company New Constructs David Trainer, quoted by CNBC.
вЂњYou can think of many optimistic scenarios for Tesla. You can imagine that it will produce 30 million cars in the next 10 years, you can imagine that they will reach the level of Toyota, the most efficient car company in history, or they will go into the insurance business. But even in any of these cases, the projected earnings will be too small for the current share price, вЂќ said Trainer.
Tesla's current quotes, traded at $418.3 per share, would be fair if its share of the total electric vehicle market was 40 to 110 percent, he said. However, with the current level of sales of 57 thousand cars per year and the assumption that 10.9 million units will be sold by 2030, the market share will be 42 percent. вЂњThus, Tesla shares are overvalued 159 times relative to its own future revenue,вЂќ the analyst concluded.
He calls the papers of Elon Musk's company вЂњone of the largest houses of cards of all time, which is preparing to collapse.вЂќ At the same time, Trainer emphasizes that even the recent split of shares at the rate of one to five will not fix the situation. It made them more accessible to private investors, which only increased the price.
According to the analyst, the fair price of Tesla shares is approximately 10 percent of real indicators, that is, $41.8 per share. At the end of April, Tesla founder and head Elon Musk tweeted that the company's value, in his opinion, is overvalued. Following this announcement, quotes fell 10 percent to $683 apiece.