TheStreet's Market Recon columnist Stephen Guilfoyle thinks that Tesla (TSLA) could take at least 12% to 15% haircut from current prices, and "it could be a lot more than that [because] this is a stock that loses money."
"I'm not short Tesla, but if I were forced at gunpoint to take a short position in any stock, it would probably be Tesla," Guilfoyle said during TheStreet's July Trading Strategies roundtable. "I think it's wildly overvalued. I don't think they'll ever meet their goals of production or sales."
But one positive that Guilfoyle noted is Tesla CEO Elon Musk's uncanny ability to raise money in the market, which probably means the company "will be able to stick around for a long time. So if there is an end game where they are profitable, they do have longevity. But I think you could make money on the downside for the short term."
Tesla shares rose 3.5% Tuesday to close at $327.22.
How to Play 2017's Second Half
Our July Trading Strategies roundtable and accompanying special report highlights lots of ways to invest over the next six months. Click below to check out:
- Fisher Investments' William Glaser, Look Beyond America's Borders in the Second Half
- Video anchor Scott Gamm, This Is Your Investing Playbook for 2017's Second Half
- Real Money Pro columnist Bret Jensen, Why I Hate the FAANGs (but Like Banks and Biotech) for 2017's Second Half
- Stocks columnist Stephen "Sarge" Guilfoyle, Disney, Nvidia, Wal-Mart and 12 Other Stocks I Like for 2017's Second
- Fixed-income expert Peter Tchir, 10 Investments I Like for a Risk-Filled Second Half
- Gold columnist David Yoe Williams, These 3 Majors Areas of Concern Should Frighten Stock Market Bulls
- Foreign-exchange columnist Douglas Borthwick, Why the U.S. Dollar Will Only Drop More in 2017's Second Half
- Staff reporter Anders Keitz, Stocks Could Rise 'Substantially' in Coming Months, Nobel-Winning Economist Robert Shiller Says