Wall Street Analyst Gordon Johnson Predicts Significant Crash of Tesla Shares $TSLA

Wall Street analyst Gordon Johnson of GLJ Research has made a gloomy prediction for Tesla shares $TSLA, suggesting that the company may suffer significant losses by 2025 due to various challenges. This prediction follows a quarterly report from Tesla where deliveries did not meet expectations.

Johnson’s bearish analysis

Johnson noted that Tesla is facing declining sales for the first time in its history, which could negatively affect margins when Q4 2024 earnings figures are published. He also warned that the situation on Tesla’s business front is concerning, which could impact the stock price. Johnson shared his concerns on X, where he stated:

“Things are going badly for $TSLA’s actual business. Sales figures went above growth for the first time and margins will likely undergo an absolute bloodbath when Q4 earnings figures are reported.”

Financial forecasts and results

• Q4 revenue: Analysts predict revenue of approximately $27.18 billion for Q4 2024, an increase of 8% compared to Q4 2023.
• Annual revenue: The revenue for the entire year is expected at $99.63 billion, an increase of 3% compared to 2023.
• Deliveries: Deliveries in Q4 2024 were lower than expected at 495,570 versus the predicted 504,770, with an annual decline to 1.79 million from 1.81 million in 2023.

Despite disappointing deliveries, the share rose to $410.44 on January 3, an increase of 8%, which Johnson attributes to speculative trading, particularly heavy call option purchases. He therefore warns that this speculative trading distracts from Tesla’s deteriorating fundamental situation.

However, Johnson is not the only one who is bearish on $TSLA. JPMorgan also gave a bearish outlook, pointing to potential costs of $3.2 billion due to delivery and regulatory issues, leading to an underweight rating and a price target of $135.

Possible bright spots

• FSD and AI: Despite the bearish predictions, Tesla’s focus on fully self-driving (FSD) and AI technologies is seen as a potential growth factor that can help the company maintain its market position.
• Regulation under Trump: Some analysts suggest that a more crypto-friendly policy under Donald Trump could also benefit Tesla.

These developments and analyses show a divided picture of Tesla’s future, with both significant challenges and opportunities for growth and innovation.