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After earlier predicting a bear target price for Tesla, Brian Johnson recently made more negative comments on the company’s stock and sales. TSLA stock is up today.
Earlier in February, the analyst predicted a $300 bear price target on the shares of Electric Vehicle (EV) makers. However, the automaker has been increasing its sales and stock price. With Tesla trading at a pre-market price of $1,646.01 and at a $1,613.16 price as the market opened, the company is still performing well above Johnson’s bear price target.
At the time of writing, TSLA stock is 1.13% up.
Bear Comments on Tesla Stock
On Wednesday, 23rd July, Tesla announced its 2020 second-quarter earnings results, which performed above analysts’ predictions. The company said that it pulled in $104 million in net income, $2.18 in earnings per share, and a whopping $6.04 billion in revenue against the expected $5.37 billion. The recent quarter marks Tesla’s fourth straight quarter of profits, and this may be one of the catalysts Tesla needs to join the $1 trillion club.
Regardless of Tesla’s successes, Johnson believes that TSLA could see a major fall in the fourth quarter. Although Johnson predicts a crash, he doesn’t think it would happen in the near future:
“So I’m not under…(the) illusion that even though my $300 is based on valuation of this automaker that the market is going to agree with me… anytime soon.”
Despite the bear comments, Tesla’s stock presently boasts of a significant increase. Since January, Tesla’s stock has jumped over 280%, with an increase of almost 600% in the last twelve months. With its current premarket price, TSLA is above 4% over its previous close of $1592.33.
More Negative TSLA Predictions
Out of the 500,000 vehicles that Tesla planned to deliver in 2020, the EV company delivered 179,387 in the first two quarters of the year. As a result, Johnson believes it might be impossible for the electric automaker to meet its target. The analyst added:
“He (Elon Musk) did say half a million was still the target but my target is to finish a marathon in under three hours and I don’t think I’m going to get there.”
In March, Tesla began the delivery of its electric SUV, Model Y, which increased the stock by 3% in premarket shortly after the company reduced its price by $3,000. Recently, the company also announced Austin, Texas, as the location for its next U.S. factory. Upon completion, the Austin factory will cater to the Cybertruck, Models 3 and Y, as well as the Semi, for the Eastern half of North America. The factory in Fremont, California, will handle production of the Models S and X for the general market. In addition, it will also cater to Models 3 and Y production for the Western half of North America.
While Model Y sales have been good, Johnson believes this success is affecting sales of the Model 3:
“At some point we think that the growth narrative could come undone. That will be perhaps closer to the second half or 4Q when it becomes apparent that Model Y might be cannibalizing Model 3 sales and when we see just what the run rate of demand for Model 3 really is.”
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