Tesla's Q2 Earnings Call Disappoints, Stock Value Plummets
Tesla's stock is worth only $85, according to analyst Craig Irwin of Roth Capital Partners, who believes the company is egregiously overvalued. Irwin had previously set a price target of $85 for Tesla, suggesting a potential downside of 71%. The EV maker's mixed second-quarter results included a lower-than-expected gross profit margin due to price cuts, leading to concerns about the company's profitability. Despite beating revenue and earnings forecasts, Tesla's gross profit margin of 18.2% fell short of estimates. Irwin warned of further downside potential for Tesla's stock due to various profit challenges and suggested investors consider other opportunities in the auto industry.