JP Morgan analyst Ryan Brinkman also believes Tesla will face increased competition from other car makers, and some veteran car giants will seek to profit from government subsidies.
Tesla will face several milestones in 2018 relative to Model 3 ramp-up, and we believe Model 3 production will not meet Tesla's target, especially given its far-to-expected output this year In that case, 'Brinkman said on Friday,' Electric vehicle competition will intensify next year, just as the US regulatory environment is no longer so favorable, including possible tax law reforms that provide buyers with a $ 7,500 federal tax credit Free will be exhausted.
This is not the first time a Wall Street analyst has suggested shorting Tesla, a well-known short seller Jim Chanos, founder of hedge fund Kynikos Associates, said last month that he has added a short to Tesla stock And expects Tesla CEO Elon Musk to leave Tesla by 2020.
Short sellers sell shares at the current share price and then buy the shares at a lower price to repay the borrowed shares, thus making use of the drop in Tesla's share price to earn the difference.
Brinkman awarded Tesla 'Underweight' and a $ 185 target price, with a 40% fall on Tesla's closing price on Thursday.
Tesla shares have fallen more than a fifth in total value compared to a record high of $ 385 a share in September. Financial analyst firm S3 Partners said that short sellers have recaptured $ 890m from Tesla's share price decline Dollars lost.
Tesla shares have risen 45% since January of this year but fell 0.8% on Friday.