Per Lekander, an American hedge fund manager, predicts that TeslaShares could fall to $14. There is even speculation that the electric car manufacturer could declare bankruptcy. This is reported by CNBC. To put it in perspective: Tesla shares in the US are currently trading at a good $165, almost twelve times what stock market experts are predicting. However, Lekander is known as a Tesla opponent: the financial professional has been betting on a drop in Tesla's share prices for years.
Tesla reports disappointing sales figures in the first quarter of 2024
Leksander's assessment was based on Tesla's weak numbers in the first quarter of the year. The pioneer of electric cars was only able to deliver 386,810 vehicles. Analysts expected significantly higher numbers.
Lekander joins the growing number of skeptical Tesla critics, according to CNBC. Skeptics often cite intense price competition, growing competition from China and falling demand for Tesla's electric cars as reasons.
Leksander sees “the beginning of the end of the Tesla bubble”
Lekander believes the first quarter was “really the beginning of the end of the Tesla bubble, which was probably the largest stock bubble in modern history.” According to him, the company could even go bankrupt, CNBC reported.
Leksander cites several reasons for his negative assessment. He believes Tesla's business model is based on strong revenue growth and direct sales to customers. This model is “brilliant” when a company grows. However, if sales fall, the situation could change, Lekander said. And seal Tesla's fate.
Leksander doesn't consider Tesla to be a growth stock
According to CNBC, Lekander's pessimistic price forecast is based on the estimate that Tesla's annual earnings per share will be $1.40 this year. He maintains that, contrary to popular belief, Tesla is not a growth stock. Therefore, in his opinion, the company should be valued at 10 times future earnings, or $14 per share. In contrast, Tesla is currently valued at 58 times forward earnings.
The report highlights that Lekander is far from the only critic of Tesla. After the latest disappointing figures, the number of skeptics has increased. For example, Richard Windsor, founder of Radio Free Mobile, described Tesla's valuation of around $500 billion (about €460 billion) as “ridiculous” at a time of growing competition.
According to CNBC, there are other experts as well. Ark Invest's Cathie Woods bought Tesla shares for some of her funds this week.