Bernstein analyst Toni Sacconaghi says that despite falling 48% year-to-date, Tesla’s (TSLA) stock price “remains high on almost every valuation metric” compared with traditional auto makers “due to its unique growth profile.” That said, the stock trades at a lower multiple than Ferrari (RACE), and its valuation looks attractive on a PEG ratio versus high growth tech stocks, Sacconaghi tells investors in a research note. However, the analyst notes that Tesla’s tech comparables have higher margins “and are arguably less cyclical than automotive companies.” Bulls argue that Tesla deserves a higher valuation for optionality value, says Sacconaghi, who models $70 per share “for upside opportunities under optimistic assumptions.” He keeps an Underperform rating on the shares with a $150 price target. The analyst sees Tesla’s current risk/reward “as more balanced, though still modestly negative.”