Fast Facts
- Electric vehicle giant Tesla reported weaker-than-expected first-quarter delivery numbers of just under 387,000 units.
- Wall Street was expecting numbers in the region of 455,000 for the quarter.
- Noted bear Per Lekander said that this moment marks the end of the Tesla bubble.
Shares of Tesla (TSLA) — one of the worst-performing stocks in the S&P 500 — have had a rough year so far. Down more than 30% for the year, the stock has been under pressure from a bunch of different directions, including softening electric vehicle demand around the world (particularly in China) in addition to steadily falling margins and prices.
The stock extended its slump this week on the release of Tesla's first-quarter delivery numbers, which came in far weaker than Wall Street anticipated.
Tesla delivered just under 387,000 units for the quarter, the first quarterly decline from the company in around four years. The numbers represent an 8.5% year-over-year decline that landed far from Wall Street's expectations of 455,000 deliveries.
Tesla cited factory shutdowns as a result of the conflict in the Red Sea as one of the main factors behind the muted numbers.
While Wedbush's Dan Ives was expecting a bad quarter, he called this "an unmitigated disaster" for Tesla.
Related: Analysts see big strategy shift from Elon Musk after Tesla delivery debacle
Hedge fund manager: Tesla could go bust
Per Lekander, managing partner at investment management firm Clean Energy Transition, told CNBC Wednesday that "this was really the beginning of the end of the Tesla bubble."
Lekander, who has been shorting Tesla since 2020, added: "I actually think the company could go bust.”
Lekander suggested that Tesla's real problem is related to lackluster demand, rather than supply-chain issues.
“I don’t see any reason whatsoever to see any recovery over the next two years given that these models are stale and given the economy is not rocketing,” he said.
Related: Tesla bull lowers price target, says negativity is 'warranted'
A chorus of bearish bulls
Lekander is not alone in his bearish stance on the stock.
Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, wrote in a post on X that there is one person responsible for Tesla's current situation: its CEO, Elon Musk.
"Basically Tesla can’t sell its cars due to Elon’s behavior," he said. "Let’s stop blaming the Houthi rebels or German environmental terrorists. Or a recession that never came. Or interest rates. Only one person responsible for this."
Ives, a longtime Tesla bull, said that in this instance, negativity is "warranted."
"For Musk, this is a fork in the road time to get Tesla through this turbulent period otherwise troubling days could be ahead," Ives wrote in a client note. "With the ongoing debacle around margins, production and ongoing macro events, Musk will need to quickly take the reins back in to regain confidence in the eyes of the Street with a big few quarters ahead."
Ives maintained an "outperform" rating on the stock. He lowered his price target to $300 last week.
And Deepwater Management's Gene Munster, calling it a "rough day" for Tesla, said the numbers are "probably more ugly" even than it seems.
He said he expects Tesla negativity to continue to worsen, saying that other analysts will likely "throw in the towel" on Tesla.
Still, Munster maintained his bullish outlook on the company long-term.
"While EV’s are in the dumpster, the pendulum will swing back in favor of the theme and Tesla because electrification and autonomy are the future and Tesla is the leader," he said.
Shares of Tesla lifted slightly Wednesday afternoon to $168. The average price target for the stock, according to TipRanks, is $196.
Contact Ian with tips and AI stories via email, ian.krietzberg@thearenagroup.net, or Signal 732-804-1223.
