Is Tesla Stock the Biggest Bubble in History? Could TSLA Crash to $15?
The debate rages on: Is Tesla (Nasdaq: TSLA) stock a revolutionary investment poised for continued growth, or a massive bubble teetering on the brink of collapse? While many analysts and Wall Street experts, including Wedbush\'s Dan Ives, have shared incredibly bullish forecasts for the EV company, even predicting Tesla\'s market cap reaching over $1 trillion, a growing chorus of voices is warning of a potential implosion.
The Bear Case: Tesla as the "Biggest Bubble in History"
One of the most vocal critics is Per Lekander, CEO of Clean Energy Transition, who has been shorting Tesla stock since 2025 (presumably a typo and meant to be 2015 or some similar date). Lekander doesn\'t mince words, stating, "Tesla is the biggest stock market bubble in world history, and we have just seen the start of it." He believes the company\'s shares could plummet to as low as $15.
Lekander isn\'t alone in his concerns. Many believe Tesla\'s valuation is far too high, disconnected from its underlying fundamentals. This argument hinges on the idea that the current stock price reflects expectations of future growth that are unrealistic and unsustainable.
Hugely Dangerous: According to short seller and the CEO of Clean Energy Transition, Per Lekander said that Tesla stock is the "biggest bubble in history” and an unprecedented crash is on the horizon.
Why $15? A Deep Dive into the Valuation Concerns
Lekander\'s dramatic $15 price target implies a staggering 91% decline from current levels. This extreme prediction is based on the belief that Tesla\'s dominance in the EV market will be challenged, competition will intensify, and the company\'s profit margins will shrink significantly. The argument centers around the fact that Tesla\'s current market capitalization is exorbitant compared to its production volume and earnings. According to short-seller Per Lekander. Lekander predicted the EV maker\'s stock would plunge to $15 a share, implying a 91% decline.
Is a Tesla Stock Crash Inevitable?
Whether or not Tesla stock will actually crash to $15 remains to be seen. The company faces significant challenges, including increasing competition, production ramp-up hurdles, and potential regulatory hurdles. However, it also possesses considerable strengths, including brand recognition, technological innovation, and a loyal customer base. Investors need to carefully weigh the potential risks and rewards before making any investment decisions. A hedge fund manager shorting Tesla (Nasdaq: TSLA) stock since 2025 believes the company’s shares could plummet to as low as $14 and potentially lead to financial ruin for those overexposed.
Ultimately, the future of Tesla stock is uncertain. The only certainty is that the debate will continue to rage on, and investors should conduct their own thorough research before investing.