Tesla CEO Elon Musk is a visionary storyteller, but his company seems to struggle with turning its "dreams into numbers," one valuation expert told CNBC.
Speaking on Wednesday's "Halftime Report," NYU finance professor Aswath Damodaran called Tesla "the ultimate story stock." In other words, the company's value can "actually be different from the price for extended periods," he said.
He specifically called out Tesla's issues with execution as one reason for this disconnect. Critics of the automaker have frequently pointed toward its inability to keep up with demand.
"I think the allure of Tesla, and the danger of Tesla, is Elon Musk," Damodaran said. "Elon Musk has made the company what it is today. ... I think the reality is that Elon Musk is not as interested in execution as he is in telling you that big story."
Damodaran said that at around $225 a share, the stock is overvalued. Yet there are "pathways I can see for the stock to be a lot more," he said.
"That doesn't mean I am willing to bet on any of those pathways," he said.