In anticipation of Tesla's earnings report scheduled for Tuesday, July 23, senior research analyst Craig Irwin from Roth MKM has expressed his concerns regarding the company's stock valuation. With a Neutral rating and a price target of $85 per share, Irwin believes that Tesla is "egregiously overvalued."

During an interview on The Morning Brief, Irwin discussed Tesla's recent endeavors in the tech field, including their plans to unveil a robotaxi in October and introduce humanoid robots in their factories by 2025. Despite these ambitious ventures, Irwin emphasized the importance of examining the company's fundamentals in this quarter's report.

Contrary to general expectations of a weak quarter, Irwin revealed that Tesla actually had a strong performance. However, he noted that the company's deliveries were still down 5% year over year, and there was an average discount of $5,000 per unit. This resulted in a 250 basis point margin erosion sequentially, indicating ongoing margin and growth challenges for Tesla.

Despite these concerns, Irwin pointed out that Tesla's stock has experienced a significant surge in the last month. The company's valuation has been a subject of debate, with the market witnessing a notable increase in shareholder enthusiasm.

As investors eagerly await the release of Tesla's earnings report, experts are keeping a close eye on the company's financial performance and market insights. The report will shed light on whether Tesla's pivot into different technological realms has impacted its overall profitability.

For more in-depth analysis and the latest market developments, viewers can watch the full episode of Morning Brief.