Tesla is still not cheap after 40% plunge, Bernstein says

Tesla co-founder and CEO Elon Musk gestures while introducing the newly unveiled all-electric battery-powered Tesla Cybertruck at Tesla Design Center in Hawthorne, California on November 21, 2019.
FREDERIC J. BROWN | AFP | Getty Images

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Despite a sharp sell off  over the past few weeks, Bernstein believes Tesla's stock is still high as investors are valuing the company beyond its core business of making electric cars.

Tesla shares plummeted nearly 13% in trading on Monday from its previous close of $546.62. The stock has fallen amid the broader sell-off in U.S. markets, with Tesla down more than 40% since hitting a high of $968.99 in February.