Hedge fund manager Per Lekander has been shorting Tesla since 2020 and believes the company could potentially go bankrupt with its stock falling to $14. He attributes this negative outlook to Tesla reporting lower than expected vehicle deliveries in the first quarter of the year, which he sees as the beginning of the end of the Tesla bubble. Lekander’s firm will profit if Tesla’s shares fall, and he predicts that the stock could drop to $14 per share, a significant decline from the current price.
Lekander criticizes Tesla’s business model, stating that its strong revenue growth, vertical integration, and direct-to-consumer sales have been successful in the past, but are now a liability as sales decline. He highlights a lack of new products in the pipeline until 2025 and a demand problem rather than a supply chain disruption as the main issues facing Tesla. Lekander does not see a recovery in the next two years given the current state of Tesla’s models and the economy.
Other negative voices on Tesla have also emerged following disappointing delivery numbers, such as Richard Windsor who questions Tesla’s valuation and competition in the market. Dan Ives, a notable Tesla bull, has expressed concerns about the company’s recent performance and its impact on the long-term narrative. HSBC and TD Cowen analysts have cut their price targets on Tesla’s stock, reflecting the growing skepticism in the market.
Despite the negative sentiment around Tesla, Cathie Wood’s Ark Invest recently bought Tesla stock ahead of the first-quarter delivery numbers, showing support for the company. Some analysts like Tom Narayan of RBC Capital Markets believe that there are still opportunities for Tesla to rebound, including the recent directive from CEO Elon Musk to employees regarding the company’s driver assist system. Narayan sees potential for Tesla in its energy storage business and autonomy features, which could provide a catalyst for the stock.
Analysts see Tesla as a divisive stock on Wall Street, with differing opinions on its future prospects. While some predict further downside in Tesla’s shares, others remain optimistic about the potential for growth. The uncertainty surrounding Tesla’s stock reflects the challenges the company is currently facing, such as increasing competition and delivery issues. It remains to be seen how Tesla will navigate these challenges and whether it can regain investor confidence in the long run.
