Tesla (TSLA) is scheduled to report its earnings tomorrow, Tuesday, July 23. The electric vehicle manufacturer unveiled its robotaxi fleet in October this year and aims to introduce humanoid robots in its factories in 2025. Craig Irwin, senior research analyst at Ross MKM, believes Tesla shares are “significantly overvalued” and rates them neutral with a price target of $85 per share.
Irwin spoke with Shauna Smith and Madison Mills on The Morning Brief to discuss Tesla’s pivot into other technology sectors and why fundamentals will be most important this quarter.
“It was widely expected that they would have a weak quarter, and they actually ended up with a pretty strong quarter. Their shipments are still down 5% year-over-year, and they have about a $5,000 discount per unit,” Irwin explains. “So they’re probably going to be down in margins quarter-over-quarter, about 250 basis points. So they still have margin issues, they still have growth issues. But the valuation, I mean, the increase in the stock price over the last month has been pretty significant.”
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This post was written by Luke Carberry Morgan