Tesla’s stock price raises concerns, expert says

Tesla’s stock has been soaring, but some experts think it’s priced way too high. After the recent robotaxi launch in Austin, Texas, market watchers are questioning if Tesla can live up to its massive valuation. Chad Morganlander, a senior portfolio manager at Washington Crossing Advisors, called Tesla’s stock price “wild” on Yahoo Finance’s Opening Bid.

He pointed out that the stock trades at ten times its revenue, which seems out of touch with reality. Morganlander believes Alphabet, which supports Waymo’s self-driving taxis already operating in several cities, is a smarter investment. Tim Urbanowicz, chief investment strategist at Innovator ETFs, also shared concerns. He said Tesla’s big goals, like its robotaxi service, often take longer to achieve than expected.

“It’s tough to see Tesla growing into this price anytime soon,” he noted. Urbanowicz urged investors to be patient, as Tesla’s bold plans don’t always deliver quickly. Despite the excitement around Tesla’s robotaxi debut, some worry the stock’s value relies too heavily on future promises rather than current results. Morganlander highlighted that Waymo’s progress in the self-driving space makes it a stronger bet for now.

Meanwhile, Tesla’s stock jumped 10% after the robotaxi launch, showing investors are still hopeful. However, with Tesla trading at such a high multiple, experts warn that its growth may not match the hype anytime soon. For now, caution is key for those eyeing Tesla’s stock.