Editor's Note: Tesla shares are down -4.8% since Hedgeye Industrials analyst Jay Van Sciver added the company to his Best Ideas short list calling it a "Blindly Obvious Short." In the collection of videos below, Van Sciver lays out his short thesis and debates a research analyst who is bullish on the company's shares.
1. A Tesla Bull and Tesla Bear Debate: 50% Upside or 50% Downside?
These two analysts couldn’t disagree more on the direction of Tesla’s (TSLA) stock price. Brian Bolan from Zacks thinks the stock is heading higher, to $450 and beyond. Hedgeye analyst Jay Van Sciver believes Tesla shares could conceivably go to zero. Time will tell who’s got the story right.
2. A ‘Big Red Flag’ for Tesla Investors
Calling the end of the “Tesla bubble” has left a lot of famous investors bruised and beaten. But there’s reason for pause now. “Orders are going the wrong way for a stock priced for exponential growth,” says Hedgeye Industrials analyst Jay Van Sciver in a recent short Tesla institutional research call. “They need to get more volume to get competitive and that demand just isn’t there.”
3. ‘Competitive Nightmare’ Lies Ahead for Tesla
Remember the Volkswagen emissions scandal, more popularly known as “dieselgate”? In 2015, it was discovered that Volkswagen intentionally programmed diesel engine cars to temporarily pass U.S. emission standards, only to later emit 40 times the legal limit on air pollutants. “Dieselgate is a complete disaster for the auto industry,” says Hedgeye Industrials analyst Jay Van Sciver. More specifically, it’s a “competitive nightmare” for electronic car maker Tesla, Van Sciver says. Here’s a look at why.
