Analysts Predict Steep Valuation Drops for Palantir and Tesla

Wall Street analysts have issued stark warnings regarding the valuations of Palantir Technologies and Tesla, predicting significant price corrections for both AI-driven companies.

Brent Thill of Jefferies predicts Palantir shares could drop by up to 59% to $80 per share. Thill cites concerns over the company's high price-to-sales ratio and its ability to sustain current growth levels.

Separately, Gordon Johnson, founder of GLJ Research, projects a 93% plunge for Tesla, targeting a price of $24.86 per share. Johnson bases this projection on a 15X forward earnings multiple and a 9% discount rate. He argues that Tesla's current valuation is inflated by unfulfilled promises regarding its humanoid robots and Full Self-Driving software.