Tesla Analyst Explains Why EV Maker Is 'Going To Prove To Be The Next Enron': 'Many Fanboys Will Run For The Hills' (CORRECTED)
Portfolio Pulse from Shanthi Rexaline
Tesla shares saw a bounce after CEO Elon Musk hinted at shareholder support for his 2018 compensation plan, but pulled back sharply after the approval was confirmed. Analyst Per Lekander criticized Tesla, calling it a bubble and predicting a 50% drop in earnings this year. He set a $15 price target and flagged risks like class action lawsuits and board compensation. Lekander compared Tesla to Enron and noted that retail traders are currently holding up the stock.
June 16, 2024 | 10:13 pm
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Tesla shares saw a bounce after CEO Elon Musk hinted at shareholder support for his 2018 compensation plan, but pulled back sharply after the approval was confirmed. Analyst Per Lekander criticized Tesla, calling it a bubble and predicting a 50% drop in earnings this year. He set a $15 price target and flagged risks like class action lawsuits and board compensation. Lekander compared Tesla to Enron and noted that retail traders are currently holding up the stock.
The analyst's bearish outlook, including a significant drop in earnings and a low price target, combined with risks like lawsuits and board compensation, is likely to negatively impact Tesla's stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100