Nasdaq TSLA Tesla

Tesla Inc was not part of the companies to be added to the S&P 500 as per a list unveiled by the index's manager S&P Dow Jones Indices on Friday.

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The strong and sustained rally in tech stocks, which appears to have finally come to an end, was due in no small part to a single investor. According to the Financial Times, citing "people familiar with the matter," Japanese tech conglomerate SoftBank (OTC: SFTBY) was the respon

Despite the recent pullback, 2020’s frothy stock market has provided Tesla (TSLA) investors with massive returns. However, if Wall Street’s most prominent Tesla bear has his way, the next 12 months will be a steep descent to the bottom.

GLJ Research analyst Gordon Johnson expects Tesla shares to be changing hands for $19 each a year from now (yes, that’s not a typo), implying a decline of 96%. Needless to say, Johnson’s rating for Tesla is a Sell. (To watch Johnson’s track record, click here)

Johnson has so many issues with Tesla, it is hard to know where to start. On the plus side, the analyst estimates Tesla’s overall 2020 deliveries will hit 494,848, which is only just below Tesla’s 2020 guidance for 500,000. And that is where the plus side ends.

The problems? Let’s see. Take away “FSD (full self-driving) and credit sales in 2020,” and Johnson believes TSLA will lose roughly $200 million “in both 3Q20 and 4Q20,” adding “the core business is still a perpetual loss maker.”

The analyst also believes Tesla has a tendency “to shift numbers around as it sees fit (as it did in 1H20 where credit sales jumped to $782mn vs. $267mn in 2H19) - making modeling the company's earnings more an ‘art’ than science.”

And while Tesla is now eligible to join the S&P 500 after recording profits for 4 consecutive quarters, Johnson argues this is probably only due to recognizing “71% of the full value of the FCA credits due to the company over the next three years in just two quarters.”

What else? Tesla’s FSD product is “vaporware.” Sales are trending down in most regions (US and Canada and in Europe), whilst the data points to “disappointing” sales in China.

Additionally, the parabolic rise in Tesla shares – “a valuation approaching that of more than the entire global auto industry” - has nothing to do with fundamentals, with the fed pumped US markets "structurally broken" and a “bubble building in markets that are not properly functioning.”

Nevertheless, Johnson predicts another "Rabbit-Out-of-the-Hat" in 3Q20 and believes “once again consensus will be ‘Bedazzled’ by the ‘Magic Show.’"

“When does it end?” Johnson asks, “We don't know... but what we are confident of is that TSLA's fundamentals are worsening by the day, and when this ends TSLA will trade down to fair value. Thus, despite all the, quite frankly, BS analysis (lacking of any actual numbers) we see out there, we are sticking with our fundamental view.”

It is hard to match such a bearish outlook, although the Street is hardly peppered with Tesla bulls. TSLA's Hold consensus rating is based on 5 Buys, 15 Holds and 10 Sells. Over the next 12 months, the analysts expect shares to be changing hands at a 30% discount, given the $292.85 average price target. (See TSLA stock analysis on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

Despite the recent pullback, 2020’s frothy stock market has provided Tesla (TSLA) investors with massive returns. However, if Wall Street’s most prominent Tesla bear has his way, the next 12 months will be a steep descent to the bottom.

GLJ Research analyst Gordon Johnson expects Tesla shares to be changing hands for $19 each a year from now (yes, that’s not a typo), implying a decline of 96%. Needless to say, Johnson’s rating for Tesla is a Sell. (To watch Johnson’s track record, click here)

Johnson has so many issues with Tesla, it is hard to know where to start. On the plus side, the analyst estimates Tesla’s overall 2020 deliveries will hit 494,848, which is only just below Tesla’s 2020 guidance for 500,000. And that is where the plus side ends.

The problems? Let’s see. Take away “FSD (full self-driving) and credit sales in 2020,” and Johnson believes TSLA will lose roughly $200 million “in both 3Q20 and 4Q20,” adding “the core business is still a perpetual loss maker.”

The analyst also believes Tesla has a tendency “to shift numbers around as it sees fit (as it did in 1H20 where credit sales jumped to $782mn vs. $267mn in 2H19) - making modeling the company's earnings more an ‘art’ than science.”

And while Tesla is now eligible to join the S&P 500 after recording profits for 4 consecutive quarters, Johnson argues this is probably only due to recognizing “71% of the full value of the FCA credits due to the company over the next three years in just two quarters.”

What else? Tesla’s FSD product is “vaporware.” Sales are trending down in most regions (US and Canada and in Europe), whilst the data points to “disappointing” sales in China.

Additionally, the parabolic rise in Tesla shares – “a valuation approaching that of more than the entire global auto industry” - has nothing to do with fundamentals, with the fed pumped US markets "structurally broken" and a “bubble building in markets that are not properly functioning.”

Nevertheless, Johnson predicts another "Rabbit-Out-of-the-Hat" in 3Q20 and believes “once again consensus will be ‘Bedazzled’ by the ‘Magic Show.’"

“When does it end?” Johnson asks, “We don't know... but what we are confident of is that TSLA's fundamentals are worsening by the day, and when this ends TSLA will trade down to fair value. Thus, despite all the, quite frankly, BS analysis (lacking of any actual numbers) we see out there, we are sticking with our fundamental view.”

It is hard to match such a bearish outlook, although the Street is hardly peppered with Tesla bulls. TSLA's Hold consensus rating is based on 4 Buys, 15 Holds and 11 Sells. Over the next 12 months, the analysts expect shares to be changing hands at a 36% discount, given the $286.44 average price target. (See TSLA stock analysis on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

What happened Shares of Chinese electric vehicle (EV) manufacturer NIO (NYSE: NIO) soared 59.4% in August, according to data provided by S&P Global Market Intelligence. That performance came on the heels of a 54.7% share price jump in July. 

SoftBank Group Corp made significant option purchases during the run-up in the U.S. stock market in recent weeks as a way of temporarily investing some of its proceeds from asset sales, people familiar with the matter said on Friday.

A compilation of the most active stocks on U.S. exchanges. For faster updates on individual market-movers, Eikon users please use search string "STXBZ US" and Thomson One users please search "RT/STXBZ US".

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

SoftBank Group Corp made significant option purchases in the U.S. stock market in recent weeks as a way of temporarily investing some of its proceeds from asset sales, people familiar with the matter said on Friday.

A compilation of the most active stocks on U.S. exchanges. For faster updates on individual market-movers, Eikon users please use search string "STXBZ US" and Thomson One users please search "RT/STXBZ US".

Tesla Chief Executive Elon Musk met Volkswagen's Chief Executive Herbert Diess for a courtesy visit during which Musk took a test drive in Volkswagen's new electric car, a source familiar with the matter said on Friday.

Wall Street's main indexes extended losses on Friday after plunging in the previous session as technology stocks sold off again, overshadowing data showing a steeper-than-expected drop in the unemployment rate in August.

A compilation of the most active stocks on U.S. exchanges. For faster updates on individual market-movers, Eikon users please use search string "STXBZ US" and Thomson One users please search "RT/STXBZ US".

German biotech firm Curevac said on Friday it had won nearly $300 million in government funding to speed up work on its prototype COVID-19 vaccine and build capacity to produce it at scale.

(RTTNews) - Shares of Tesla Inc. (TSLA) are rising almost 5 percent or $19.44 in Friday's morning trade at $426.44 despite no specific news that could influence the luxury electric car maker's stock.

Stocks have gotten off to a horrendous start in September. Although the exact reason behind this rocky start to the month isn't altogether clear, it can probably be attributed to a couple of headwinds, such as the uncertainty created by the upcoming presidential election, the la

Thursday's stock market drop was a reminder to investors that nothing about 2020 is going to be easy.

The S&P 500 was set for a higher open on Friday following a brutal selloff in the previous session as a drop in the unemployment rate offset a slide in technology stocks, while investors remained cautious about a patchy economic recovery.