Tesla, Inc.’s (NASDAQ:TSLA) strategy amid the economic uncertainty has turned several bullish analysts into bears, but CEO Elon Musk has shown that he hasn’t been affected by the negative commentary.
What Happened: On Friday, Bernstein analyst Toni Sacconaghi said in a note that Tesla is the firm’s best stock idea for shorting, The Street reported. His 12-month price target of $150 for the stock suggests a roughly 38.5% downside from current levels. Tesla settled Friday’s session up 0.49% at $243.84, according to Benzinga Pro data.
Sacconaghi has had a “Sell” rating on Tesla since July 2020.
The analyst based his most recent view on expectations that electric vehicle demand will falter and likely lead to deeper price cuts. He also warned of rising competitive pressure, especially from Chinese rivals. Wall Street analysts will likely materially take down their near-term delivery and revenue estimates over the coming months, and the estimates rerating will probably further pressure the overvalued stock, he added.
Tesla Fans React: Sacconaghi’s comments did not go well with Tesla investors, who immediately sprang to the company’s defense. Jim Hall, a Tesla enthusiast, noted on X that the analyst has never had a “Buy” rating on the stock ever since Sacconaghi began covering it in 2016, when the stock was trading at $16.
“Missing & fighting AGAINST a 2500% gain & has been dead wrong for nearly a decade,” Hall said.
Hall also shared a screenshot of a CNBC story from August 2019, which reported on Sacconaghi’s warning that EVs from Jaguar’s iPace and Audi were eating into Tesla’s market share.
In a thread, Hall questioned Sacconaghi’s analysis.
“Hey Toni hows the iPace doing right about now? Ouch not looking so good thru 2022,” Hall said, adding “Thanks for all your boneheaded, errr I mean SOLID analysis.”
See Also: Everything You Need To Know About Tesla Stock
In response, Musk commented on Hall’s post, saying, “So strong contra-indicator then.”
So strong contra-indicator then
— Elon Musk (@elonmusk) December 8, 2023
Why It’s Important: The Tesla story has taken a turn for the worse, as the company started an aggressive price war that began eating into its auto gross margin. The core auto gross margin, which excludes regulatory credits, has…
Click Here to Read the Full Original Article at Cryptocurrencies Feed…
