Tesla short interest calls for the company's stock price to be $15
Tesla's stock is believed to be facing a significant pullback, and the related comments have attracted market attention. Short seller Per Lekander stated that Tesla's stock valuation is abnormally crazy, with the company's earnings declining, and he expects the stock price to potentially drop by 91%. Tesla is facing legal risks and high compensation issues. Lekander predicts that Tesla may experience a significant decline when announcing second-quarter performance. Tesla's production in the first quarter was weak, and profits may be poor or even result in losses. Tesla's stock price may be approaching a turning point
According to the financial news app Zhitong Finance, recent comments suggesting that Tesla (TSLA.US) stock is severely overvalued and may face a significant pullback have attracted widespread market attention. It was reported that short seller Per Lekander stated in a media interview that he believes Tesla stock has entered one of the biggest stock market bubbles in history.
It is worth noting that just last Friday, Tesla CEO Musk stated that he believes Tesla is a $30 trillion company. As of Monday's close, Tesla rose by 5.3% to $187.44, with a total market value of $597.738 billion.
Lekander, CEO and portfolio manager of a clean energy transition company, pointed out, "In my opinion, Tesla's models are outdated, and its valuation is extremely crazy. The company's earnings are rapidly declining, and it is expected to decrease by 50% this year."
Since 2020, Lekander has been consistently shorting Tesla stock. Like other bearish investors, he has criticized Tesla's high valuation and predicted a significant pullback in its stock price. Tesla's sales in the previous quarter were far below market expectations, indicating the challenges the company faces in the face of weak demand and intensifying competition in the electric vehicle market.
Furthermore, Lekander also highlighted that Tesla faces multiple ongoing legal risks and high compensation issues, which also increase its investment risk.
"Considering the current growth situation of the company, a 10x earnings valuation seems very generous. My target price is $15, which indicates a potential 91% decline from the current stock price." Lekander stated that he expects this decline to occur when Tesla announces its second-quarter performance.
Regarding Tesla's lackluster production performance in the first quarter, Lekander believes that although delivery volumes may improve, the company's profits will be "very bad," and it may even incur losses.
"If Tesla reports losses for two consecutive quarters, its stock price is likely to further plummet," he further pointed out, "It seems that we are very close to a turning point, as the situation has been very unstable."