Tesla’s recent earnings report raised red flags for investors, causing a significant drop in the company’s stock price. The report revealed a concerning 20% decline in car deliveries compared to the previous quarter.
This news comes as a blow to Tesla. Hedge fund manager Per Lekander, a vocal critic since 2020, predicts this could be the beginning of a major downfall for the company. He believes that the stock, which has already plunged over 30% this year, could plummet a staggering 91% to just $14 per share.
Lekander argues that the company is faces several challenges, including increased competition, especially from Chinese automakers, and a general slowdown in demand for electric vehicles. He also suggests that CEO, Elon Musk, may be a liability for the company due to his controversial persona.
Lekander isn’t alone in his concerns. Even typically optimistic analysts, like Dan Ives of Wedbush Securities, expressed worry about Tesla’s future. Ives called the upcoming quarter a “nightmare” and warned that Tesla needs to navigate these turbulent times effectively to avoid even worse outcomes.
While Lekander represents a particularly bearish view, his concerns highlight the potential problems Tesla faces. The company must address declining deliveries, a more competitive landscape, and potential consumer disillusionment to regain investor confidence and prevent a significant stock price drop.
Reference- CNBC, Investor Business Daily, Bloomberg, Inside EVs, Reuters