Tesla Investors Bearish Due to Three New Catalysts

Tesla (TSLA) stock appears to be losing momentum, and losing it fast. Since trading at an all-time high of $900 per share earlier this year, TSLA stock has lost approximately one-third of its value in short order.

Multiple catalysts have contributed to this decline. Three of the most recent catalysts of note for investors are the cancellation of Plaid Plus, the departures of several top executives, and a threat from Anonymous. (See Tesla stock analysis on TipRanks)

Plaid+ Cancellation

One of the most exciting product reveals in Tesla’s recent history has been the company’s Plaid Plus vehicle. The purported specs on this vehicle are incredible. The word “purported” is essential, because this car has been nixed about as quickly as it was announced, by CEO Elon Musk, via a recent tweet. In the tweet, Musk claimed the upgraded car had been cancelled because the basic “Plaid is just so good.”

Tesla bulls note that Tesla appears to be consolidating its focus right now, because it had been doing too many things at once. By releasing one vehicle instead of the expected two, Tesla can potentially capture more of the high-end performance EV market than if it had simply released one vehicle without touting a second one.

While that may be true, this abrupt tweet looks like an amateur hour move. Investors may expect more from one of the wealthiest and most influential individuals in the U.S.

Additionally, Plaid Plus featured new 4680 battery cells which were supposed to be the future of the company’s high-performance line-up, as well as its Semi trucks. Some investors are questioning whether these batteries are even real or available right now (or any time soon). Many investors remember the hot water QuantumScape (QS) had gotten itself in with short-sellers over its purported solid-state battery technology.

Executive Departures

Tesla has seen a series of executive departures lately.

Of key concern, Tesla’s long-time trucking automotive President Jerome Guillen quit on June 3. He was in charge of bringing the Tesla Semi to production – the very same vehicle that was supposed to be powered by the 4680 battery. As one of the longest-tenured executives at Tesla, Mr. Guillen was considered one of the top four executives in the company.

Additionally, it was reported on Monday that RJ Johnson, Tesla’s head of energy operations, has left the company. There had been rumors in the past about this move, but his departure has only recently been reported, creating concern that the company may be attempting to keep these executive departures hush hush.

Furthermore, Tesla has lost another top manager for the company’s new Berlin plant, currently under construction. On June 5, it was reported Mr. Jost had left the automaker last month. Why he left is uncertain, but his departure adds to the appearance of a worrisome pattern.

Anonymous to Musk: Expect Us

A chilling video published by what claimed to be the popular Anonymous movement highlighted some of the catalysts pointed out in this article. However, the video focuses more on the feelings of some retail investors that Elon Musk disregards those who have put their faith in him.

While it appears this video was posted by a group of doppelgangers, it does seem that Elon Musk is raising the ire of a specific niche of investors via his tweets on cryptocurrencies and other topics. Elon Musk’s tweets move markets, and it appears that Anonymous, or a group that really looks like Anonymous, does not appreciate his tweets. How this plays out will be interesting to watch.

What Analysts Are Saying About TSLA Stock

According to TipRanks’ analyst rating consensus, TSLA stock comes in as a Hold. Out of 23 analyst ratings, there are 10 Buy recommendations, 7 Hold recommendations, and 6 Sell recommendations.

As for price targets, the average analyst Tesla price target is $640.29. Analyst price targets range from a low of $67.00 per share to a high of $1,080.00 per share.

Bottom Line

There is reason to be downright bearish on Tesla stock right now. Tesla may be a bubble in the technology space.

Tesla bulls may be able to find solace in what appear to be decent growth numbers today. But as the sector matures, growth and artificially-high margins could come down considerably.

Accordingly, right now, investors may want to pay more attention to the $67 price target than the $1,080 price target. Indeed, there’s a reason why analysts diverge so vigorously on TSLA stock. For the reasons explained above, it appears the $67 price target is based in a much more rooted reality than the $1,080 price target at the present moment.

Disclosure: Chris MacDonald held no position in any of the stocks mentioned in this article at the time of publication.

Disclaimer: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities.