rtmark
LearnBonds.com

Dr. Doom Predicts Tesla Motors Inc (TSLA) Stock Price of $ZERO

Tesla Inc stock flies on china deal Model X Falcon Wing Doors

Tesla Motors Inc is now on the radar of Dr. Doom aka Mark Faber of the Gloom, Boom and Doom Report, who is well-known for his bearish take on the overall market. But, there are some stocks on whom Faber has a particularly bearish view, and the most important among those is Tesla.

Tesla Motors Inc (TSLA) Factory Freemont, California

Anyone can do what Tesla does

In an interview to CNBC’s “Trading Nation,” Faber said that what Tesla produces can be produced by Nissan, Mercedes, BMW, and Toyota. And, anybody in the world can make it ultimately, at much lower cost and probably much more efficiently, the expert said.

Faber said the market for Toyota and these large vehicles firms is just not big enough, however, the moment it becomes bigger, they will move into the field, and then Tesla Motors Inc is guaranteed to have a lot of rivals. And, this increased competition would impact Tesla’s business and stock in a big way, notes Faber.

“I think Tesla is a company that is likely to go to zero eventually,” he said.

Mercedes-Benz, who is set to uncover two electric SUVs and two electric sedans under a new line, is all ready to cross the threshold by entering the electric game in a big way, Bloomberg reported. In a recent promotion, BMW, which makes its own electric cars, pinched the Elon Musk-led firm for making buyers wait for their cars, in a recent ad.

What’s his strategy for Tesla?

As per the Automotive News, Tesla’s business development executive – Diarmuid O’Connell – rejected Tesla’s rivals as having “delivered little more than appliances,” as opposed to Tesla’s ground-up strategy of rethinking how vehicles are driven and powered.

As per Faber, his strategy of shorting is a part of his bearish take on the market. Citing Tesla Motors Inc as an example, Faber said “if you are an investor with a lot of nerves and you sleep well at night anyway, then you could hedge the portfolio somewhat by selling short some stocks that are overvalued and are likely to go down.”

Bearish on the index

Talking of the S&P, Faber said, “I think we can easily give back five years of capital gains, which would take the market down to around 1,100.” He didn’t specify the reason behind his bearish attitude toward S&P 500 index, however, said, “one never knows precisely why this will happen.” Faber said he believes the gains in the market are unsustainable.

Faber is foreseeing miserable days for the US index, noting that around 48% of the stocks in the S&P 500 checked their 52-week highs in the past three months while 6% hit their 1-year highs on Monday itself. Faber – in October 2009 – said the overbought Indian and US stocks could be set for a noteworthy fall. The S&P 500 was trading around 1,100 level at that time.

Trusted & Regulated Stock & CFD Brokers

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar

Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.