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Tesla Inc. TSLA bear Gordon Johnson yet again sounded the alarm bell on the stock, this time citing a small rival’s predictions.
What Happened: GLJ Research’s Johnson noted that Tesla’s Chinese rival Nio Inc.’s NIO CEO William Li had a dire prediction for the Chinese electric vehicle market in the first half of 2023.
See Also: Best electric vehicle stocks
Li reportedly sees a challenging period ahead, weighed down by a cut in government subsidies and the broader economic slowdown.
These two factors will likely erode local demand in the world’s largest new-energy vehicle market, Johnson said, citing Li.
The analyst said this does not bode only for Tesla because China is the company’s largest and most profitable market. The China situation will likely make it difficult for Tesla to hit the consensus estimate for 1.91-million-unit shipments in 2023, up from 1.334 million units in 2022, he said. This would mean the company has to report sales growth of 43.2% growth.
Johnson has a Sell rating on Tesla shares and $73 price target.
Price Action: Tesla shares closed Friday’s session down 1.76%, at $123.15, according to Benzinga Pro data.
Read Next: Here’s More Evidence Tesla’s Cybertruck Could Soon Move Into Production
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Image and article originally from www.benzinga.com. Read the original article here.