Tesla stock is ‘egregiously overvalued’: Analyst

#Tesla #stockmarket #yahoofinance
Tesla (TSLA) stock took a nosedive after the electric vehicle giant posted a first quarter revenue and profit miss, and gross margins that dipped below 20% to 19.3%, as the cost of recent price cuts hit profitability. The company's thinning margins has prompted some of Wall Street to go bearish on the stock, with a number of analysts slashing their price targets. Craig Irwin, ROTH Capital Partners Senior Research Analyst, says Tesla is "egregiously overvalued," but the miss was "not unexpected." Tesla's stock has risen over 160% year-to-date. "Wall Street got a little too bullish," says Irwin. "It's a growth stock, they know they have to keep that growth rate up." CEO Elon Musk stressed that the company will put sales growth ahead of profit in its road ahead, but despite this, Irwin says things will only get worse for the company. Irwin remains optimistic on the auto sector as a whole, saying he's "quite bearish for the equity, but I think the sector is going to do very well for the long run." Craig Irwin spoke with Yahoo Finance's Brad Smith and Julie Hyman. Watch the entire interview here.
Key Video Moments
00:00:20: Wall Street "too bullish"
00:00:45: Things will get worse
00:00:58: "Egregious" valuation
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