Tesla Stock Valuation Looks "Insane," Strategist Warns

Tesla’s hyped robotaxi debut this past weekend is drawing attention to one of the biggest concerns among bullish investors: the stock’s valuation may already price in a future where thousands of driverless Teslas operate in the U.S., earning under $10 per trip, Brian Sozzi reported for Yahoo Finance.

Unlike Tesla, Waymo has been proven and is already operational in many cities. I Photo: Tesla

“There’s a lot of jazz hands going on here with Tesla’s robotaxi launch,” said Chad Morganlander, senior portfolio manager at Washington Crossing Advisors, on Yahoo Finance’s Opening Bid.

“This stock trades at ten times revenue. You have a stock multiple that’s insane.”

Washington Crossing Advisors, wholly owned by boutique investment bank Stifel, manages approximately $2 billion in assets.

Morganlander said he personally invests in tech giant Alphabet, which operates the more established Waymo autonomous taxi service. Waymo first launched its driverless taxis in Phoenix in 2018.

“Waymo has been proven, and it’s working in many cities,” Morganlander explained.

“And we believe that this whole robotaxi idea—that you're going to let your car go out in the middle of the night and pick up drunk people just to make money—is perhaps a little bit foolhardy. We would pick Alphabet instead.”