An in-depth presentation released by Devonshire Research Group has argued that Tesla Motors (NASDAQ:TSLA) may be overvalued. The firm lays out three arguments as to why it believes Tesla Motors stock is valued too high.
As quoted in the press release:
Tesla is a commendable company because it has been able to build a meaningful market position in one of the most difficult-to-enter industries. It has created valuable, innovative technology, exciting new car designs and pushed the automotive industry towards increased environmental-friendliness. Unfortunately, it has relied heavily on existing technology in designing a successful EV model, and while it may have generated some valuable IP it now controls little of it and has questionable sustainable competitive advantage in technology. Hype surrounding Tesla’s success has translated into significant overvaluation of the stock. Fundamental analysis of Tesla’s financials, technology, and intellectual property, however, paint a different picture and show that the company’s value is significantly lower than the current market valuation.