Tesla Motors appears to have growth in its future, but its stock valuation has run too far, Efraim Levy of S&P Capital IQ said Wednesday.
"We like the fundamental story. We see plenty of growth for the electric vehicle industry for this company, and we think that they're becoming profitable now and there's going to be a lot of profitable growth," he said.
"However, the valuation, as you indicated, is a concern. We're pricing in a lot of good news that has to come through."
Levy is initiating coverage of Tesla Motors with a "sell" rating on its stock and a $150 price target.
The call came a day after Wedbush Securities analyst Craig Irwin issued an "outperform" rating on Tesla shares and a price target of $240, based in part on a survey of potential auto buyers.