"At some point, I don't know when, you're going to wake up as an investor and say this company walks like a duck, quacks like a duck and must be a duck -- in other words, it's a car company," O'Leary said. "It has the same problems car companies have."
O'Leary wonders when the company will start to be valued as a car company.
"When does it turn into a car company and then be valued at the same multiples as a BMW, a Ford (F - Get Report) , Toyota Motor (TM - Get Report) , Hyundai, Kia?" he asked. "That day is going to be extremely painful for shareholders. That's when you see the stock go from the $300s to under $100."
If Tesla dipped to $90 a share, for example, that would represent a nearly 70% decline from its current level of $298.
The Blunt Reality on Tesla
Count us as ones that don't get Wall Street's infatuation with Tesla. It's a money-losing operation in an industry that is about to become way more competitive. Further, how can you not own own a Mercedes or BMW as opposed to a Tesla? Tesla's third quarter reminded everyone of the challenging road ahead for Elon Musk's chaotic creation. And finally, the stock market may be getting that.
Overall, one leaves Tesla's earnings report wondering if Musk should give former Ford CEO Mark Fields a call -- this company needs a professional auto guy.
Tesla bulls look dumb.
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