Tesla could "go bust" while its stock could fall to $14, Per Lekander, a hedge fund manager who has been shorting Elon Musk's electric car maker since 2020, told CNBC on Wednesday.
Lekander was a former portfolio manager at investment firm Lansdowne Partners who successfully called a 2018 rally in carbon prices. Since 2020, Clean Energy Transition has been short Tesla's stock, meaning Lekander's firm will profit if the automaker's shares fall. Lekander gave a number of reasons for his negative outlook. He said Tesla's business model has been based on strong revenue growth, vertical integration and direct-to-consumer sales. Vertical integration broadly refers to when one company internally handles many parts of a process from the manufacturing of the car to the software. This model is "brilliant" when a company grows, but goes in "reverse" when sales fall, Lekander said.such as supply chain disruption.
"Let's call this as it is: While we were anticipating a bad 1Q, this was an unmitigated disaster 1Q that is hard to explain away. We view this as a seminal moment in the Tesla story for Musk to either turn this around and reverse the black eye 1Q performance," Ives said in a note Tuesday.