TSLA - Tesla: 7 Reasons To Short The Stock

2024-05-31 14:21:17 ET

Summary

• Tesla, Inc.'s fundamentals have deteriorated, with slowing revenue growth, declining margins, and a softening EV market.
• Growing competition from other automakers, particularly in China, poses a challenge to Tesla's market share.
• I present seven reasons to short the stock.

Dear readers,

I've been a Tesla, Inc. ( TSLA ) bear for well over a year and have published a number of articles on the stock here on Seeking Alpha. Most recently, following disappointing Q4 2023 earnings , I issued a STRONG SELL rating at $177 per share and informed readers in the comment section that I initiated a (substantial) short position shortly after publishing the article.

My short thesis was based on deteriorating fundamentals, in particular (1) revenue growth slowing, (2) margins declining, (3 ) a softening EV market, and above all (4) an expensive valuation with limited upside and had plenty of potential downside....

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