GLJ Analysis founder Gordon Johnson joined Fintech Zoom’s PreMarket Prep present Tuesday. Among the many matters Johnson mentioned: electrical car chief Tesla Inc (NASDAQ: TSLA) and the current EV truck IPO Nikola Company (NASDAQ: NKLA).
Tesla’s Q2: Johnson stated Tesla traders needs to be bracing for brutal second-quarter numbers given the state of the worldwide auto market.
“Tesla’s accounting is all the time difficult. They acknowledge a number of issues they usually pull a number of issues ahead. However in the event you simply have a look at the registration knowledge, in Colorado, which is essentially the most beneficiant EV market, their gross sales in April-May are down 73%, he informed PreMarket Prep.
Johnson stated current numbers in the remainder of the U.S., Europe and China additionally paint a bearish image for Tesla’s quarter.
Johnson’s Tesla Bear Thesis: Tesla shares have been on an unimaginable run within the final 12 months, however Johnson stays bearish on the stock.
“I couldn’t be more bearish. Look, Tesla is completely detached from reality. The stock has kicked my butt. I’ll admit that, and people laugh when I say I’m bearish,” he stated Tuesday.
Tesla’s valuation is greater than double that of VOLKSWAGEN AG/ADR (OTCMKTS: VWAGY), which offered 10 million automobiles in 2019, the analyst stated. Tesla offered 365,000 automobiles final 12 months.
“They’ve never made a profit. We think they’re going to lose money again this year,” Johnson stated.
Tesla CEO Elon Musk has been repeatedly shifting the goalpost with regards to Tesla’s success story, he stated.
Johnson On Tesla’s Lineup: “Initially it was the S and the X that were going to dominate in the luxury market. That didn’t happen. Then it was going to be the Model 3, which was their mass-market car, which took them to profitability. That didn’t happen. Then it was the Model Y, right? They won’t even tell you what orders are on the Model Y.”
He famous that Tesla has now shifted consideration to its Cybertruck preorders.
“Listen, the deposit for the Cybertruck is $50. I don’t think the truck is street legal. They don’t have a facility to make it. It’s almost like the Tesla Semi, where they were taking preorders for $100,000 three years ago and they still haven’t made the car.”
Analysts and traders appear to be making an misguided connection between the momentum of Tesla’s stock and its underlying enterprise, Johnson stated.
“As we get through this year I think people are going to realize that Tesla’s not only losing share, but momentum for EVs is slowing.”
Johnson On Nikola: Shares of Tesla competitor Nikola have skyrocketed 573% within the final three months. Whereas Johnson doesn’t formally cowl Nikola stock, he stated he is skeptical of the hype surrounding the corporate.
“Hydrogen trucks make sense. The problem is [Nikola CEO Trevor Milton] doesn’t have a plant to produce it, he doesn’t have a working truck and the stock is valued as if he’s going to take over the entire trucks space.”
Johnson has a year-end price goal of $87 for Tesla. The stock was buying and selling 0.68% increased at $1,001.08 on the time of publication Tuesday.
Watch to the complete interview with Gordon Johnson within the clip under, or take heed to the podcast right here.
PreMarket Prep is a each day buying and selling present hosted by prop dealer Dennis Dick and former flooring dealer Joel Elconin. You’ll be able to watch PreMarket Prep dwell each day from 8-9 a.m. ET right here. The replay will be discovered on Fintech Zoom’s YouTube channel, and the podcast is on iTunes, Google Play, Soundcloud, Stitcher and Tunein.
Associated Hyperlinks:
Tesla Analyst Estimates ‘Staggering’ 650Okay Cybertruck Preorders
Analyst: Nikola Is ‘Prime Goal For A Quick Squeeze’
Picture courtesy of Tesla.
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