Prominent Tesla Bear Says Shares Could Trade Below $800 in Near-term
2022.04.07 14:53
Prominent Tesla (TSLA) Bear Says Shares Could Trade Below $800 in Near-term
GLJ analyst and a prominent Tesla (NASDAQ:TSLA) bear Gordon Johnson says shares could trade below $800 in the near term.
TSLA is in a downtrend, and has bounced off upside resistance three times now (a dynamic that solidifies the trendline is significant “ i.e., when rejected three times, the trendline become significant,” Johnson said.
His comments come after the report emerged that Tesla is recalling 127,785 Model 3 units in China due to manufacturing defects. Tesla’s Model 3 vehicles, both imported and China-made, were reported to have minor manufacturing differences in their rear motor inverter power semiconductor parts, as per CnEVPost.
As a result, the defect may cause the inverter to malfunction after the car has been used for a certain period.
The recall includes 34,207 imported Model 3 vehicles and roughly 93,578 China-made units, produced between Jan. 11, 2019, and Jan. 25, 2022.
Tesla plans to update the motor control software in the defective vehicles using the remote vehicle upgrade (OTA) technology, free of charge.
Johnson says the focus will now be on whether the US NHTSA will choose to ignore the recall or take any action.
“Who knows but this seems like a big one,” Johnson told clients.
Tesla shares are up 2% in pre-open Thursday.
By Senad Karaahmetovic
