Shark Tank star Kevin O'Leary said Tesla (TSLA) is trading at a "stupid multiple." He sat down with TheStreet's Scott Gamm.

"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) , Toyota Motor (TM) , 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.

Tesla shares are up 39% since the start of the year, while GM shares are up 23%. Ford shares are up 2%.

O'Leary is the Chairman of O'Shares ETF Investments

Tesla Bears Have the Upper Hand For Now...

Tesla's Q3 shareholder letter and earnings call, and in particular the commentary Elon Musk and others provided about the company's ambitious Model 3 production ramp, gives bears the upper hand for the time being. But with Tesla signaling consumer interest in the relatively cheap sedan is as strong as ever, the pendulum could eventually swing back if the company shows signs of putting its current production woes to rest. Must read: Tesla Bears Have the Upper Hand for Now, but That Could Change Quickly by Eric Jhonsa.

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