Hedge fund manager Per Lekander has been shorting Tesla since 2020 and recently estimated that the company could go bust, with its stock potentially falling to $14 per share. Lekander believes that Tesla is a “no growth” stock and should be valued around 10 times forward earnings rather than the current 58 times forward earnings. He attributes Tesla’s potential downfall to a lack of new vehicle releases until 2025 and a focus on two models, the Model 3 and Model Y, which account for the majority of the company’s sales.
Lekander’s negative outlook is part of a growing trend of skepticism surrounding Tesla, particularly following disappointing delivery numbers in the first quarter of the year. Other analysts have also expressed concerns about Tesla’s valuation and ability to maintain its dominance in the electric vehicle market. Despite this, Cathie Wood’s Ark Invest recently purchased Tesla stock, indicating continued support for the company. RBC analyst Tom Narayan sees potential for a rebound in Tesla’s performance, citing the company’s energy storage business and the possible impact of its Full Self Driving system on sales.
Tesla’s challenges in the first quarter have raised questions about its future growth and competitive positioning. Some analysts believe that Tesla’s valuation is overinflated given the increasing competition in the electric vehicle market. The company’s reliance on a limited number of models and a lack of new releases in the near future could further impact its sales and profitability. However, other analysts remain optimistic about Tesla’s long-term potential, particularly in areas such as energy storage and autonomous driving technology.
The negative sentiment surrounding Tesla reflects broader concerns about the company’s ability to maintain its momentum in the face of growing competition and changing market dynamics. Tesla’s stock price has already fallen significantly this year, prompting skepticism about its future prospects. While some analysts see potential catalysts for a rebound in Tesla’s performance, others believe that the company’s challenges are more deep-rooted and could lead to further declines in its stock price. As the electric vehicle market evolves, Tesla will need to adapt to changing conditions in order to sustain its growth and leadership position.
