Key points:
- Tesla faces a predicted 91% stock price decline, with a target of $14, as analysed by Per Lekander.
- First-quarter vehicle deliveries fell to 386,810 units, missing market estimates.
- Tesla’s direct-to-consumer model and lack of new vehicles until 2025 highlight its current challenges.
- Lekander’s analysis suggests Tesla’s operational hurdles and waning demand could lead to its downfall.
Tesla, a brand synonymous with innovation in the electric vehicle (EV) market, faces a challenging road ahead, according to Per Lekander, a hedge fund manager at Clean Energy Transition. Lekander, with a history of shorting Tesla since 2020, brings a critical eye to the company’s current predicaments and future in the EV industry.
From $233.94 to $14: Tesla Stock’s Alarming Forecast
Having successfully predicted the 2018 rally in carbon prices, Lekander’s insights carry weight. His previous prediction in March 2021 was that Tesla’s stock would plummet. Indeed, this forecast came true. Shares dropped from $233.94 to $166.63. Despite his accurate forecast, Tesla’s future appears grimmer through Lekander’s lens, predicting a potential collapse to $14 based on a 10 times forward earnings valuation – a stark contrast to its current 58 times.
Tesla Misses Q1 Targets with 386,810 Deliveries
Tesla’s first-quarter vehicle deliveries paint a concerning picture, failing to meet the lowest market estimates with 386,810 units. Lekander attributes this to a significant demand problem, exacerbated by Tesla’s lack of new vehicle releases until 2025. This stagnation and a direct-to-consumer sales model that falters amid declining sales signals deep-rooted issues within Tesla’s business strategy.
Tesla’s Bleak Future: A 91% Stock Plunge Forecast
Lekander’s prognosis for Tesla is bleak, foreseeing no recovery over the next two years. The anticipated 91% downside potential from its recent close, following a 30% dip in stock performance this year, underscores the gravity of Tesla’s situation. Lekander points out several factors for the negative outlook. Firstly, he highlights the company’s business model challenges. Secondly, demand issues come into play. Finally, an unfavourable economic climate is also a key reason.
Tesla at a Crossroads: Innovation vs. Survival
With Tesla not immediately available for comment, the industry is left to ponder the implications of Lekander’s predictions. Tesla’s innovative streak and market dominance in the EV sector are at a crossroads, facing significant hurdles that could redefine its future.
While Tesla has been a beacon of progress in the electric vehicle industry, its path forward is fraught with challenges. Lekander’s detailed analysis and predictions highlight a potential crisis that could reshape Tesla’s trajectory. As the EV market continues to evolve, Tesla’s ability to navigate these turbulent waters will be crucial for its survival and continued success.
