00:00It's Benzinga, bringing Wall Street to Main Street
00:02Tesla faces institutional avoidance because investors view the stock as too expensive
00:06relative to expected profit growth, according to the Future Fund's Gary Black.
00:11Black pointed to Tesla's 2026 price-to-earnings ratio of 205 times and projected earnings per
00:18share growth of 35% from 2026 through 2030, producing a PEG ratio of 6.0 times. He said
00:25valuation and falling earnings estimates explain why many institutional investors avoid the stock
00:30and why Tesla continues to underperform the NASDAQ 100. Black also questioned whether full
00:36self-driving is driving sales. Investor Ross Gerber said Tesla's post-delivery stock decline
00:42refocused attention on challenges, including an aging lineup and falling gas prices.
00:47Shares fell 1.77% to $395.76 in pre-market trading Thursday.
00:53For all things money, visit Benzinga.com.
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