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Tesla (TSLA) is doing so well that bears are now grabbing straws with rumors

Tesla (TSLA) is doing so well these days that bears are now grabbing straws with some no-burger stories to try to paint good results in bad light.

You can smell the desperation.

Last week, Tesla announced its Q1 2021 delivery and production results.

The carmaker delivered over 184,000 vehicles in the first three months of the year – beating almost all expectations of industry watchdogs.

Tesla’s deliveries rose 110% year-over-year, beating its own delivery record all the time.

Wall Street has digested the results, and most analysts need to revise their estimates after Tesla has beaten expectations.

But one analyst, Gordon Johnson, GLJ Research analyst and longtime Tesla bear, is not impressed.

Instead of focusing on Tesla, which supplies a record number of vehicles ̵

1; building on the automaker’s already massive lead in electrification, Johnson focused on a rumor that Tesla was discounting 1,000 Model 3 vehicles in China.

The unconfirmed rumor was shared on the social today, saying that Tesla discounted 1,000 Model 3 vehicles to employees of CATL, one of Tesla’s battery suppliers:

Johnson pushed the story to financial media sites and said via Street Insider:

“Well, there would be no reason for TSLA to sell 1,000 cars at a 20% discount IF they had orders for the cars that did not have a discount. At the end of 1. quarter 21, TSLA thus ran the order on its cars and therefore had to give a 20% discount on cars that had already seen price cuts of 19-30%. ”

China is an important market for Tesla, and it is expected to have contributed more than 40,000 vehicles in the last quarter.

According to Tip Ranks, Gordon Johnson is one of the worst financial analysts in the world, ranking # 7,161 out of 7,425 analysts on the platform.

Electrek’s Take

This is where the Tesla Bears are now? Tesla delivers a record number of vehicles – meeting all expectations, and instead focusing on an unconfirmed rumor from an unnamed source on social media?

The desperation is obvious.

Even if the rumor turns out to be true, who cares then? That could have been part of a larger deal given all the business Tesla does with CATL.

While Tesla is not on millions of units a year yet, it has become a major automaker, carrying which Johnson said would be impossible for years.

Now they do not know what to do with it and they grab straws to try to paint Tesla in a bad light.

There are still plenty of “TSLAQ” people out there, but they are not as tall as they used to be and they are less popular on Wall Street.

Johnson is one of the last, and that’s not surprising given that he’s one of the worst analysts in the world, and that’s saying something because there are a lot of people who are terrible at that job.

According to Tip Ranks, he had a sales valuation on Tesla’s stock when it was worth $ 60, and it’s now worth almost $ 700, and he’s made similar bad calls to other green companies like SolarEdge.

He is unusually bad among unusually bad people. Why his approach to Tesla is used by financial media like Street Insider is my understanding.

Full disclosure: I own TSLA shares.

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