Is Tesla the next Studebaker? A recent Bloomberg Technology article sums up the situation right now: the “Wall Street split” on Tesla comes down to a battle between “tech believers versus car guys.” With record high stock prices the debate is anything but settled:
Most of the seven analysts who rate the stock a buy are focused on coverage of technology companies, while a majority of the six who advise investors to sell are dedicated to automobiles, according to data compiled by Bloomberg and Sanford C. Bernstein & Co.
Analysts who “concentrate on manufacturing efficiency and vehicle reliability” see Tesla’s stock valuation as “out of line with reality“:
While the tech folks are honing in on the potential for disrupting the century-old industry, those who concentrate on manufacturing efficiency and vehicle reliability see the stock’s valuation as out of line with reality.