Tesla Stock 'Could Fall 90% Tomorrow,' Fund Manager Still Won't Buy — Here's Where He's Investing Instead

Tesla Inc (NASDAQ:TSLA) stock has fallen 8% year-to-date in 2025 and some investors and analysts believe the stock remains overvalued with more room to fall.

One of the top-performing fund managers thinks Tesla stock could have significant downside ahead.

Tesla Overvalued: When it comes to electric vehicles, Tesla may be a market leader and one of the top names in the sector.

When it comes to looking at stocks with attractive prices, T. Rowe Capital fund manager David Giroux is more than avoiding Tesla stock.

"Tesla could fall 90% tomorrow, and I wouldn't buy a share, because it's just crazy overvalued," Giroux told Barron's.

The comments were among those from Giroux at the Barron's July Roundtable when discussing the second half of 2025 outlook.

Tesla wasn't the only stock targeted by Giroux for being overvalued in his comments to Barron's.

"Palantir, I wouldn't buy a share, crazy overvalued. Costco Wholesale, 49 times earnings, Walmart, 37 times, doesn't make any sense."

Giroux also called Palantir Technologies (NASDAQ:PLTR), Costco Wholesale Corporation (NASDAQ:COST) and Walmart (NYSE:WMT) stocks overvalued, mostly based on price-to-earnings ratios.

Tesla currently trades at a ...