Tesla stock is currently trading around the $187 mark on Tuesday and is down nearly 25% year-to-date. The stock remains bearish in 2024 delivering little to no price spurts in the charts. The development is testing the patience of investors as Tesla stock is no longer a money-generating asset in the market.
However, short seller and the CEO of Clean Energy Transition, Per Lekander said that Tesla stock is the “biggest bubble in history” and an unprecedented crash is on the horizon. He warned investors to steer clear from Tesla as the stock could witness an epic downturn.
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Tesla Stock Could Crash To $15, Warns Short Seller
Lekander revealed that Tesla’s valuations are “insane” and pointed out that its earnings have been declining rapidly over the years. He estimated that the company’s earnings could fall by another 50% this year which could ignite a sharp downfall. Since growth is drying up and Tesla has more downsides, its stock could be the first to be affected, he said.
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“I think, given that there is no growth here, 10 times earnings is very generous. My price target is $15. I think this is hugely dangerous,” he said. “The models are aged, and valuation is absolutely insane. Earnings are falling off a cliff. In my view, Tesla is the biggest stock market bubble in world history,” Lekander said.
If Lekander’s bold warning turns out to be accurate, then Tesla stock could fall by 92% to reach $15. Therefore, an investment of $1,000 could turn into $80 if the scenario predicted by Lekander plays out. That’s a dangerous dip that could send the US markets into a frenzy.
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The development will not only affect the US equities but will impact the global stock market simultaneously. Foreign investors have heavily invested in Tesla and a crash to $15 could leave global investors high and dry.