Tesla stock has much more downside ahead as the electric car maker struggles to keep up with rivals, analyst says - 'This is just an auto company'

• Tesla stock has more downside ahead as EV rivals gain ground, according to GLJ Research's Gordon Johnson.
• "If you look at whenever competitors come in, Tesla's market share gets decimated," he told CNBC.

Tesla stock has much more downside ahead as competition from peers continues to heat up, according to GLJ Research analyst Gordon Johnson.

In an interview with CNBC on Tuesday, he said that although Tesla's valuation has seemingly benefited from the mystique surrounding the company and CEO Elon Musk at the expense of fundamentals that tell a different story.

"I know people love Tesla, but I think here's significantly more downside as people realize this is just an auto company: 95% of revenue from selling cars, 5% from an energy division that loses money," Johnson said.

Musk has routinely pinned blame for the steep fall in Tesla stock on the Federal Reserve and steep interest rate increases this year. But he is facing criticism from shareholders for neglecting the electric car maker in order to focus on his recent acquisition of Twitter.

Competition in the electric vehicle space has only intensified in 2022, and Tesla has struggled to increase output while also slashing prices in key markets like China.

"If you look at whenever competitors come in, Tesla's market share gets decimated," Johnson said.

Meanwhile, Tesla's market capitalization still remains above than the the next four largest automakers combined, he added.

But if the company was valued the way its rivals are, based on auto sales and margins, "that would mean you're talking about an $18 dollar stock," Johnson estimated.

On Tuesday, shares dipped 2% to $146.66, giving Tesla a valuation of about $463 billion.