Tesla: the largest stock market bubble in modern history has just begun to burst; ergo, the worst for TSLA stock has just begun.
Word of the hedge fund manager Per Lekander, which has already started to get busy and even for a while, launching a short bet against the stock of the electric car giant founded and run by Elon Musk.
Interviewed by CNBC, the manager has produced a thrilling prediction on the trend of the stock: In his opinion, Tesla shares could fall to $14.
Per Lekander’s comment has arrived after the fall in the prices of Big Tech, an illustrious member of the Magnificent 7which slipped the day before yesterday by 4.90% to $166.63, following the bad news relating to car deliveries, which fell on an annual basis for the first time since the year of the Covid-19 pandemic, i.e. since 2020, during the first quarter of 2024.
The decline in deliveries was notable, equal to -8.5%, to 386,810 units delivered: a shock for Big Tech, which in the same period of time also witnessed a decline in production, equal to -1.7% on an annual basis, to 433,371 units.
In the intraday lows of the session the day before yesterday, Tuesday 2 April 2024, the stock had slipped by up to around 6%. Yesterday, Wednesday 3 April, Tesla shares partially recovered ground, rising 1.05% to $168.38.
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If there is a stock among the US Big Tech and among the Magnificent 7 that was not overwhelmed by the flurry of purchases that hit Wall Street, in fact it was Tesla himself.
Actions in fact, they concluded the first quarter of 2024 with a drop of 29%recording the strongest slide since the end of 2022, and also recording the worst third quarter since the company launched its IPO in 2010.
At this point investors are waiting it’s for next April 23rd, day on which Elon Musk’s group will comment on the accounts for the first quarter of the year in a call.
For now, the comments on Tesla stock certainly don’t bode well. Among these, we highlight that of the investor who is actually shorting Tesla shares, and not recently.
Hedge fund manager Per Lekander, a partner at investment management firm Cleam Energy Transition, has been betting against TSLA stock since 2020.
His target price on the stock is thrilling, equal to just 14 dollars. It is not for nothing that according to him the sell-off on the stock had just begun.
Referring to the stock’s tumble the day before yesterday, Lekander said that “it was really the beginning of the end of the Tesla bubble which was probably the biggest stock market bubble in modern history.”
And “I really believe that the company could fail”, added the manager, making the matter worse.
Lekander stated that Tesla is a “no growth” stock, which should be valued at 10 times expected earnings, significantly lower than the current value, which corresponds to 58 times expected earnings.
(currently being written)