| Dear Reader, ‘I actually think the company could go bust.’ That’s what hedge fund manager Per Lekander says about Tesla…predicting its stock price could fall down to $14. And it seems like he’s onto something, seeing that Tesla’s price is now at US$178 from a US$293 high last year — nearly a 40% drop. But it’s still an outlandish claim…and not one I buy 100%. Though I see where he’s coming from. Tesla — and the larger EV industry — is starting to show cracks. EV demand worldwide is starting to drop. In the US, Q1 2024 sales of EVs dropped for the first time since 2020, says Bloomberg. Here in Australia, it also flatlined for the first time since 2021. It’s getting so bad that Tesla had to lay off 10% of its employees. I’m telling you this because there’s a way you could benefit from this shift. Lekander himself is shorting Tesla stock…basically profiting when it falls. You could follow him (although it’s unlikely that a huge company like Tesla will go bust anytime soon)… Or you could try my alternative instead. Regards, Greg Canavan,
Editor, Fat Tail Daily | 