NEW YORK (TheStreet) --The Tesla (TSLA) - Get Report Model X was ranked the least reliable mid-sized SUV in the latest auto reliability survey published by Consumer Reports. This report comes as the electric vehicle automaker is set to report fiscal 2016 third quarter earnings after the market close on Wednesday.
In light of this recent headline regarding Tesla, LMM Investments chairman and CIO Bill Miller explained why he is not an owner of the stock during Monday afternoon's "Fast Money Halftime Report" on CNBC.
The primary reason, Miller explained, was the stock's rich valuation.
"If you look at what we're doing from a valuation perspective, we actually believe Amazon (AMZN) is significantly mis-priced in the sense that it's worth a lot more. We don't believe Tesla is worth any more than it's trading at, in fact, it's worth less," Miller said. He also sees significant risk coming from Tesla's merger with SolarCity (SCTY).
Despite his bearish stance on Tesla, Miller still has great respect for CEO Elon Musk, calling him a "business genius." However, Miller maintains that the stock is too expensive for him to have a position in it.
Shares of Tesla were higher during mid-afternoon trading on Monday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates Tesla as a Sell with a ratings score of D+. This is driven by several weaknesses, which the team believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks the team covers.
You can view the full analysis from the report here: TSLA