Tesla Inc (TSLA)

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Top Fund Manager Says Tesla Stock Is At Least 5X Overpriced, Pegs Fair Value At $80 A Share
https://www.benzinga.com/markets/equities/26/01/49683310/after-michael-burry-this-top-fund-manager-says-tesla-stock-is-at-least-5x-overpriced-pegs-fair-value-at-80-a-share

As Tesla Inc.’s shares continue to soar, former fund manager George Noble says that its valuations are fundamentally disconnected from reality, even after considering its ambitious robotaxis and Optimus humanoid robots.

Tesla Shares Significantly Overvalued
Noble, who ran Fidelity’s Overseas Fund, outlined Tesla’s “sum of the parts valuation,” considering its various products and segments, before comparing each of them with the valuations of peers and competitors, on Sunday, in a post on X.

Starting with robotics, Noble compared Tesla's Optimus project with established and emerging competitors. “Boston Dynamics is estimated to be worth $5B. Figure AI recently raised money at a valuation of $39B,” he said, while adding that “both are far ahead of $TSLA in the development of robots.”



Even when “generously imputing the Figure AI valuation to Optimus,” Noble said that would translate into $12 per share for Tesla.

Moving on to the company’s robotaxis business, he pointed to the projected valuation for Alphabet Inc.’s Waymo, which he said is “rumored to be going public at a $100B valuation,” adding that assigning a similar valuation to Tesla's robotaxis business would imply “a value of $30 per $TSLA share.”



The company's core automotive business, he said, is already in decline, which, going by “comparables,” is worth $60 billion, or $18 per share, and finally, the energy business, according to Noble, would be worth an additional $20 per share.



All in, Noble said the entire company adds up to just “a total valuation of $80 per $TSLA share,” which stands in stark contrast to its current $438.07 per share.

While acknowledging the rough nature of his estimations, Noble said that his “back-of-the-envelope calculation is far more realistic” than those cited by the company’s bulls, who he said “worship at the altar of price.”