Tesla currently has a market value of 1.2 trillion euros. However, a manager warns that this value is far too high. Because Tesla has been selling fewer cars for years, but vehicles make up the largest part of the revenue. And he is not the only person warning of an overvaluation.
The magazine BusinessInsider spoke with experienced fund manager George Noble about the company Tesla. Noble explained in the conversation that the shares of the electric car manufacturer represent an enormous stock market bubble that investors are not paying enough attention to.
Currently, Tesla has a market value of 1.4 trillion US dollars. Converted, that’s nearly 1.2 trillion euros. For comparison: Microsoft has a market value of 3.46 trillion US dollars and Nvidia of 4.56 trillion US dollars. But Noble explains that Tesla is completely overvalued.
Tesla is worth 1.4 trillion US dollars, but the automotive business has been weakening for years
What is the problem? According to the manager, the company is extremely well valued, but the economic successes clearly contradict the high valuation. The stock is therefore not realistically valued based on facts, but rather on promises and a hype that has caught the stock.
The problem according to Noble mainly lies with the cars: Because the majority of Tesla’s revenue comes from the sale of vehicles. But exactly in its core area, the company has been weakening for the second year in a row.
The automotive business accounts for 87% of the revenue, faces significant challenges and will record a decline in revenue for the third consecutive year in 2026. Based on comparable valuations, the automotive business is only worth 20 dollars per share.
He said the company is heavily exposed to competition in this area and pointed out that revenue has already been declining for the second year in a row:
I think this is possibly the biggest bubble in the history of the stock market. In my opinion, there is not a single stock that is as far from its fundamental valuation.
He even believes a decline in the third year is possible. Because the competition in the automotive business is fierce. In addition, Tesla relies on promises like robots and self-driving taxis, but this may harm the company more than help.
Are there other people who are warning? Yes, George Noble is not alone in his warning. The well-known investor Michael Burry recently warned of a massive overvaluation of Tesla (via finanzen100.de). Poter Collins, a trader known for “The Big Short,” also considers the Tesla stock to be significantly overvalued (via Businessinsider.com).
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