A naukri.com initiative
Insider
1M
336
Image Credit: Insider
He called Tesla's stock crash. Now he thinks it'll fall even more.
- Ross Gerber, an early Tesla investor, predicted a 50% fall in Tesla stock by 2025, and it has already dropped 31% since then.
- Gerber does not anticipate a rebound for Tesla stock this year, despite the recent losses.
- Gerber, who reduced his firm's Tesla stake by 31% in 2024, believes Tesla stock is still too expensive to invest in.
- Earnings are crucial for Tesla stock to rebound, according to Gerber, but he sees challenges in achieving significant earnings growth.
- Gerber points out that Tesla's high valuation, Musk's political controversies, and the used-car market issues contribute to the stock's struggles.
- Tesla faces challenges in the used-car market due to the durability of its vehicles and declining values, impacting consumer purchasing decisions.
- Gerber emphasizes the importance of Tesla's growth prospects being revalued in the current economic environment.
- The quality of Tesla products, akin to the 'Apple problem,' may affect repeat purchases and contribute to the challenging market dynamics.
- Gerber highlights the pressure on Tesla's valuation amid economic uncertainties and changing investor perspectives.
- Overall, Gerber maintains a skeptical view of Tesla's stock and believes the company faces significant hurdles to warrant investment.
Read Full Article
20 Likes
For uninterrupted reading, download the app