Stocks: Tesla Price Target of $24 Sparks Controversy as Analyst Predicts 90% Drop

The Tesla Price Target Controversy

Stocks related to Tesla are under scrutiny as analyst Gordon Johnson of GLJ Research issues a sell rating, maintaining a stark price target of just $24 for TSLA. This forecast comes as part of his broader bearish outlook, suggesting that Tesla may be facing a dramatic 90% crash. Johnson’s perspective is fortified by a belief that Tesla is currently overvalued, trading at an exorbitantly high forward PE of 82.

Predictions and Market Analysis

In contrast to optimistic expectations of Tesla's upcoming vehicle deliveries, estimated at 461,500 by various analysts, Johnson predicts a slightly lower figure of 456,600, indicating a modest 2.9% increase quarter-over-quarter. His conclusions are drawn from a thorough analysis of market data across multiple countries.

• Johnson's longstanding bearish stance has made waves in the stock market.
• Despite increasing delivery estimates, his concerns about Tesla's valuation persist.
• The broader market sentiment still sees TSLA as a leader in the EV sector.

Long-Term Outlook

Johnson’s forecasts starkly contrast with more optimistic industry predictions, which anticipate TSLA reaching a market cap of $1 trillion by 2024. Key challenges such as product delivery promises and price discrepancies continue to fuel skepticism among analysts.

Final Thoughts on Tesla's Valuation

With analysts like Johnson projecting a dismal future for Tesla, the debate over the company’s true potential and value remains contentious. As investors consider the implications of such forecasts, the performance of TSLA will undoubtedly be a focal point in stock discussions moving forward.