A prominent Tesla Inc. (NASDAQ:TSLA) bear has issued a dire warning about the company’s future.
What Happened: Per Lekander, a hedge fund manager who has been shorting Tesla since 2020, has predicted that the electric vehicle (EV) maker could “go bust,” with its stock potentially plummeting to $14, reported CNBC.
Lekander’s comments come after Tesla’s first-quarter vehicle deliveries, which were significantly lower than market estimates.
Lekander, the managing partner at investment management firm Clean Energy Transition, described the first-quarter results as the “beginning of the end of the Tesla bubble.”
“I actually think the company could go bust,” he said.
He suggested that the company’s business model, which relies on strong revenue growth, vertical integration, and direct-to-consumer sales, could falter if sales decline.
He asserted that his assessment is rooted in a projection of the company’s full-year earnings per share for this year at $1.40.
Lekander argues that Tesla should be regarded as a “no growth” stock valued at 10 times forward earnings, compared to its current valuation of around 58 times forward earnings. Forward earnings are a crucial metric traders employ to evaluate a stock’s worth.
A prominent Tesla Inc. (NASDAQ:TSLA) bear has issued a dire warning about the company’s future.
What Happened: Per Lekander, a hedge fund manager who has been shorting Tesla since 2020, has predicted that the electric vehicle (EV) maker could “go bust,” with its stock potentially plummeting to $14, reported CNBC.
Lekander’s comments come after Tesla’s first-quarter vehicle deliveries, which were significantly lower than market estimates.
Lekander, the managing partner at investment management firm Clean Energy Transition, described the first-quarter results as the “beginning of the end of the Tesla bubble.”
“I actually think the company could go bust,” he said.
He suggested that the company’s business model, which relies on strong revenue growth, vertical integration, and direct-to-consumer sales, could falter if sales decline.
He asserted that his assessment is rooted in a projection of the company’s full-year earnings per share for this year at $1.40.
Lekander argues that Tesla should be regarded as a “no growth” stock valued at 10 times forward earnings, compared to its current valuation of around 58 times forward earnings. Forward earnings are a crucial metric traders employ to evaluate a stock’s worth.
A prominent Tesla Inc. (NASDAQ:TSLA) bear has issued a dire warning about the company’s future.
What Happened: Per Lekander, a hedge fund manager who has been shorting Tesla since 2020, has predicted that the electric vehicle (EV) maker could “go bust,” with its stock potentially plummeting to $14, reported CNBC.
Lekander’s comments come after Tesla’s first-quarter vehicle deliveries, which were significantly lower than market estimates.
Lekander, the managing partner at investment management firm Clean Energy Transition, described the first-quarter results as the “beginning of the end of the Tesla bubble.”
“I actually think the company could go bust,” he said.
He suggested that the company’s business model, which relies on strong revenue growth, vertical integration, and direct-to-consumer sales, could falter if sales decline.
He asserted that his assessment is rooted in a projection of the company’s full-year earnings per share for this year at $1.40.
Lekander argues that Tesla should be regarded as a “no growth” stock valued at 10 times forward earnings, compared to its current valuation of around 58 times forward earnings. Forward earnings are a crucial metric traders employ to evaluate a stock’s worth.
See Also: Read Moreelectric vehicles, Elon Musk, Equities, EVs, Kaustubh Bagalkote, News, Per Lekander, TSLA, Markets, TSLA, US88160R1014, News, Equities, Markets, Benzinga Markets
