Tesla Stock: Massive Overvaluation and Impending Crash?

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The future of Tesla stocks is not as clear as it may seem, according to one analyst

Craig Irwin from ROTH Capital Partners suggests that the biggest growth in Tesla stock price since 2020 could soon come to a halt, as reported by Autoblog.

What will be the long-term interest in Tesla stocks? Irwin expressed his doubts about the company’s ability, led by Elon Musk, to sustain the current stock price in the long run. According to him, investors may lose interest in Tesla because traditional automakers like Ford and General Motors are increasing their production of electric vehicles and offering many new alternatives.

“I still maintain my pessimistic stance,” Irwin told Yahoo Finance. “It’s a great company, it has played a huge role in transforming transportation, but there are 100 new electric vehicles in the market.”

This year has been successful for Tesla in the stock market

Tesla’s stock price has increased by approximately 150% this year, driven by AI-supported growth and investor confidence in CEO Elon Musk’s renewed focus on the development of the electric vehicle brand, particularly after bringing Linda Yaccarino on board as the head of Twitter.

However, Craig Irwin argues that the Austin-based company is “overly overvalued” and that achieving the same level of growth in the future will become increasingly challenging.

Competition is emerging 

“These major automakers like Ford and General Motors are entering the market with compelling vehicles that will effectively compete with Tesla, making it more difficult for Tesla to achieve the growth and profitability it has been experiencing,” stated Irwin.

Another factor that, according to Irwin, could reduce Tesla’s stock price is the continuous delays in the long-awaited autonomous driving technology, which is still several years away from becoming a significant source of revenue.

“It’s impressive that they are striving to rapidly develop this technology, but I believe others will be more cautious in introducing innovations to the market,” Irwin noted for Yahoo Finance.

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