A prolific fund manager known for his contrarian views on the stock market has offered up a bleak outlook on the value of Tesla’s stock.
While taking part in a Barron’s roundtable discussion regarding overvalued stocks, David Giroux, fund manager at T. Rowe Price, had a succinct take when it came to the value of Tesla stock. His viewpoint left very little to the imagination. «Tesla could fall 90% tomorrow, and I wouldn’t buy a share, because it’s just crazy overvalued,» Giroux said.
Tesla stock has continued to face a tumultuous 2025 due to a combination of declining automotive sales, the anticipated expiration of U.S. electric vehicle tax credits, and increased global competition.
There has also been an increase in investor concerns over CEO Elon Musk’s polarizing public stances and involvement in the Trump administration, which cause some to associate Tesla with Musk’s personal viewpoints and politics.
These factors helped contribute to Tesla’s second-quarter earnings report, which showed a year-over-year decrease in automotive revenue.
While speaking to Morningstar in March, Giroux had previously noted the benefit of companies battling through downturns. «The easiest way to make money in the marketplace is to find a great company that’s out of favor for non-fundamental reasons,» Giroux explained. «During periods of market uncertainty, we add risk assets when everybody else is selling. We systematically add risk assets when they’re cheap and pull back when they’re expensive.»
After the company’s less-than-stellar stock performance, Giroux appears to have no desire to buy in during Tesla’s downturn. Nevertheless, Musk has remained optimistic about his company’s future. In a September 1 post on X, Musk revealed where he believes Tesla will thrive the most. «~80% of Tesla’s value will be Optimus,» Musk wrote in the post.
Tesla Optimus is an AI-powered robot designed to perform practical tasks in various environments. The tech is powered by the same AI developed for the company’s Full Self-Driving technology. While still in development with prototypes and evolving designs, Musk has touted Optimus as the next groundbreaking utility, which will become available for widespread use following mass production.