Tesla is facing serious challenges that threaten its stability and future. Hedge fund manager Per Lekander, who has been betting against Tesla since 2020, warns that the company could go bankrupt and its stock could plummet to $14.
Reasons for pessimism:
- Weak demand: The Model 3 and Model Y models make up the majority of Tesla’s sales, but Lekander predicts declining interest in these models.
- Lack of innovation: Tesla does not plan to launch any new models until 2025, which could lead to a loss of customer interest and lag behind the competition.
- Weakening economy: An economic downturn could reduce demand for electric vehicles overall, also impacting Tesla.
Criticism of Tesla’s business model:
Lekander criticizes Tesla’s business model as unsustainable in the face of declining demand. He believes that vertical integration and the direct sales model will become disadvantages if sales decline.
Different analyst views:
- Some analysts share Lekander’s skepticism and have lowered their price targets for Tesla’s stock. Analysts at HSBC and TD Cowen lowered them to $250 and $200, respectively.
- Other analysts remain optimistic and emphasize Tesla’s long-term potential in energy storage and autonomous driving. Tom Narayan of RBC Capital Markets believes that the decline in deliveries in the first quarter was a “one-off” and that Tesla still has great potential.
Conclusion:
Tesla’s future is uncertain and depends on its ability to overcome current challenges. If the company fails to increase demand and bring innovative models to market, it risks losing its market leadership and a sharp drop in its stock price.
Note:
This article is based on information from CNN and does not constitute investment advice. Always do your own research and analysis before investing in any company.
Photo: JD Lasica from Pleasanton, CA, US, CC BY 2.0 , via Wikimedia Commons
