On September 4, 2020, Tesla, Inc (NASDAQ:TSLA). completed the sale of $5.0 billion (before commissions) of its common stock through its “at-the-market” offering program previously disclosed on September 1, 2020. The final settlement of the shares sold is expected to be completed by September 9, 2020.
In a CNBC broadcast David Trainer, the Founder of New Constructs, a US research institute, explained how grossly overvalued Tesla stock is in his opinion.
Even if the best-case scenario occurs with the electric car pioneer in terms of the number of cars manufactured and sold, margins increase and new business areas are opened up, the operating group profit would still have to be significantly higher.
Assume that 10.9 million car sales will be reached by 2030. With an average sales price of $ 57,000, that implies a market share of 42 percent, according to Trainer.
“We think this is a big, big – one of the biggest of all time – houses of cards that’s getting ready to fold,” said Trainer.
In addition, the share split poses a massive risk for inexperienced investors, as the visually favorable price should induce them to buy. The analyst sees Tesla shares fairly valued at around $ 50.