Roth Capital Partners analyst Craig Irwin warns that Tesla bulls should fear the arrival of the Apple’s electric vehicle, among other things.
“The biggest catalyst over the next couple of years will be the launch of the Apple car in 2024. But it will be like Porsche launch, you’ll see Apple announce something in the $10,000 to $20,000 range and then look to crush numbers the way Porsche does. The technology in the car I expect to be amazing. [Typical of Apple],” said Irwin, a Tesla bear, on Yahoo Finance Live.
Irwin has a $150 price target on Tesla’s stock, suggesting an 81% plunge from current levels.
Speculation on the Apple car has quieted down of late after reports of its existence surfaced in December 2020.
The tech giant reportedly could start production on its own electric vehicle as early as 2024, according to reports at the time. The car may be powered by a “breakthrough” monocell battery design that offers up greater range than traditional electric vehicle batteries.
But Irwin adds Tesla faces other near-term risks in the form of increased competition from traditional automakers going all in on electric.
MacDailyNews Take: Tesla’s current valuation is basically more than the rest of the vehicle makers combined, so the probability is high that it’s overvalued.
Now, did Irwin misspeak when he said he expects Apple to announce something in the $10,000 to $20,000 range? Did he instead mean $100,000 to $200,000 range, which is much more in the line with Porsche? If so, Apple would be competing with top-end Tesla models (i.e. not with the Model 3, Model Y, or CyberTruck, which is expected to start around $39,900 as per Motor Trend).
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