On December 11th, Caixin News Agency reported that so far this year, Tesla's stock price has surged nearly 100%. However, the voices of bearish sentiment towards Tesla in the market have never stopped. Especially regarding the prediction of Tesla's stock price next year, the voices of some "dead bears" in the market are once again echoing towards the end of the year. Tesla CEO Musk is clearly unwilling to back down and has conducted some "matchups" on social media platform X
It is reported that the origin of the matter comes from a report released by US brokerage firm Bernstein last Friday. Bernstein analyst Toni Sacconaghi stated in the report that shorting special stocks will be the best investment strategy for the next year
Sacconaghi's latest rating for Tesla is "sell", with a target price of $150. As of last Friday's close, Tesla's stock price was last reported at $243.84.
Sacconaghi said that he believed that Tesla would have 40% of the downward space in the next 12 months, because the decline in demand for electric vehicles might lead to greater cost reduction. At the same time, in major markets, including China, Tesla would face increased competition.
Earlier this month, the China Passenger Car Association stated that Tesla sold 82432 cars in the Chinese market last month, an increase of 14.3% from October, but a decrease of nearly 18% from the same period last year, marking the largest year-on-year decline since December last year.
Sacconaghi believes that Wall Street analysts' expectations for Tesla's recent delivery and revenue will experience a "substantial decline" in the coming months, and adds that sluggish growth expectations will drag down this already expensive stock next year.
"Fundamentally speaking, 2023 has been a very difficult year for Tesla. Tesla's earnings per share this year were 50% lower than the consensus expectation at the beginning of the year. Surprisingly, Tesla's stock price has almost doubled so far this year. In order to stimulate demand, Tesla was forced to significantly lower prices this year, and we believe that this is still necessary in 2024," said Sacconaghi.
Musk's mockery: What a powerful reverse indicator
Although Bernstein's bearish report appears to have a nose and eyes. However, many Tesla fans scoff at this and have come forward to try to defend Tesla.
Jim Hall, a staunch supporter of Tesla, posted on social media platform X stating that since Sacconaghi began tracking Tesla stocks in 2016, this Bernstein analyst has never given the stock a "buy" rating - even though Tesla's trading price was only $16 at the time.
Hall pointed out that in the past decade, Sacconaghi has missed out on Tesla's 25 times increase, and its forecast is simply wrong.
And seeing Sacconaghi's long history of predicting Tesla's stock price incorrectly, Musk also mocked below this tweet, "What a powerful reverse indicator..."
Of course, to get to the point, despite Musk's sharp confrontation with market bears and the strong performance of Tesla's stock price, Musk has stood firm. However, in the past few months, the number of Tesla bears in the US stock market has also been quite high.
According to data from S3 partners, the current net short position on Tesla stocks is approximately $18.63 billion, accounting for approximately 3.03% of the total outstanding shares. Tesla has been one of the most popular bearish stocks on Wall Street in the past few months.