Tesla: Take What Elon Musk Says With a Massive Grain of Salt, Says Analyst

Elon Musk has legions of followers who’ve been completely satisfied to indulge his whims, however the World’s Richest Man additionally has loads of detractors. Hardly any have been as outspoken of their mistrust of Musk as GLJ Analysis’s Gordon Johnson.

The analyst has not been shy in laying out the the explanation why traders ought to steer clear of Tesla (TSLA) and now Johnson has compiled an inventory of “Musk guarantees that weren’t achieved (or, in layman phrases, lies).”

These vary from damaged Twitter pledges (to not ban anti-fascist accounts from the platform, claiming little one security on Twitter was his highest concern although “pictures of exploited youngsters could be discovered all around the app after he gutted the kid security crew,”) to his extra outré guarantees corresponding to pledging to donate $6 billion to alleviate world starvation (didn’t occur), land a person on Mars by 2021 (nope), and put 1 million robotaxis on the street in 2020 (uh uh) to the Boring Firm bailing out on initiatives to “Autopilot mistruths” corresponding to his proclamation in January 2017 that it might be 3 to six months earlier than Tesla had full autopilot. “Beta was simply launched this yr and has severe issues,” Johnson notes scathingly.

“Why isn’t anybody within the media targeted on detailing any of this?” he asks. “Looks as if a BIG story, no?”

Johnson thinks the fawning over Musk is a case of not eager to see actuality for what it’s, though the analyst notes that may be altering.

“In some ways,” Johnson explains, “it appears E. Musk’s method is outlined by individuals investing in a dream (and everybody within the media overlaying every certainly one of these false guarantees as if they’re FACT), a false promise, and he maintains this home of playing cards fairly properly, though the large decline of Tesla inventory this yr would possibly present that that is coming to an finish. It additionally would possibly clarify his erratic habits.”

It’s hardly shocking to be taught, then, that Johnson has a Promote ranking for TSLA shares, backed by a $73 worth goal. The determine implies ~62% draw back from present ranges. (To observe Johnson’s observe file, click on right here)

Johnson is the Avenue’s most outstanding bear and whereas 2 others be part of him within the naysayer group, with the addition of 18 Buys and eight Holds, the inventory claims a Average Purchase consensus ranking. In distinction to Johnson’s take, there’s loads of upside projected right here; at $303.72, the typical goal suggests shares will climb 64% greater within the yr forward. (See Tesla inventory forecast on TipRanks)

To seek out good concepts for shares buying and selling at engaging valuations, go to TipRanks’ Finest Shares to Purchase, a newly launched software that unites all of TipRanks’ fairness insights.

Disclaimer: The opinions expressed on this article are solely these of the featured analyst. The content material is meant for use for informational functions solely. It is rather vital to do your individual evaluation earlier than making any funding.

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