Quick overview

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Tesla: TSLA has fallen 10% so far in 2025, and some analysts and investors believe it remains overvalued and could drop further. According to one of the top-performing fund managers, Tesla’s stock may face significant declines in the future

 

T. David Giroux, fund manager at Rowe Capital, is not even considering buying Tesla stock. Giroux told Barron’s, “Tesla could drop 90 percent tomorrow, and I wouldn’t buy a share, because it’s just crazy overvalued.” Giroux made these comments during the Barron’s July Roundtable, where he discussed the outlook for the second half of 2025.  He criticized several stocks for being too expensive.  Tesla is a well-known name in the electric vehicle industry and may even be a market leader

I wouldn’t buy a share of Palantir because it is extremely overpriced. It doesn’t make sense for Costco Wholesale to have a 49 times earnings ratio while Walmart’s is 37.

Mainly based on price-to-earnings ratios, Giroux also considers the stocks of Palantir Technologies (PLTR), Costco Wholesale Corporation (COST), and Walmart WMT) to be overvalued. Currently, Tesla’s price-to-earnings ratio is 200, which is significantly higher than many other technology and automotive stocks.

Giroux is not shorting when it comes to stock betting, as Elon Musk has warned those shorting Tesla; instead, he is avoiding it in the funds he manages. Giroux’s High Returns: Giroux ranks among the top-performing stock pickers