Tesla, Inc. (TSLA.US) is facing an "epic" short seller: analysts warn that the stock price could potentially plummet by 93% to $25.

Tesla, Inc. (TSLA.US) has become a focus of market attention due to a 25% decline in its stock price this year. Wall Street strategist Gordon Johnson predicts that the stock price will further decline. As the founder and CEO of GLJ Research, Johnson has maintained a pessimistic attitude towards this electric car manufacturer for a long time. He recently reiterated a target price of $25 - if this target is achieved, it would represent a nearly 93% drop from last Friday's closing price. His latest remarks highlight market concerns about the valuation of Tesla, Inc.: despite declining sales volume, the market still holds high expectations for its growth. Johnson's bearish stance is primarily based on Tesla, Inc.'s expected price-to-earnings ratio of around 175, which he believes is unsustainable given the company's current performance. He points out that Tesla, Inc. has been able to maintain a high premium mainly because CEO Elon Musk tends to set grand visions for product prospects, and these unfulfilled promises are often already priced into the stock. In addition, the report also analyzes Tesla, Inc.'s options trading data, pointing out that there was a highly concentrated options trading frenzy in 2021, which has now significantly cooled off, with trading volume shrinking as the stock price falls. Johnson believes that this phenomenon is highly correlated with Tesla, Inc.'s stock's high volatility, and is one of the fundamental reasons for the recent continuous decline in the stock price. The strategist also specifically mentioned that the disappointing launch of Tesla, Inc.'s self-driving taxi service is a key factor exacerbating investor anxiety, and he suggests that service delays may further weaken market confidence in achieving its grand goals. Tesla, Inc. operates in the consumer cyclical industry, specifically in the automotive and parts sector. With a market capitalization of about $1.31 trillion, Tesla, Inc. is a vertically integrated pure electric car manufacturer and artificial intelligence software developer. The company has made significant progress in the electric vehicle market, with global deliveries expected to reach nearly 1.64 million units by 2025. Tesla, Inc. has a diverse product line, including Deluxe Corporation sedans, midsize cars, crossover SUVs, and plans to launch self-driving taxi services, as well as ventures into energy solutions such as CECEP Solar Energy solar panels and energy storage batteries. According to data from GuruFocus, Tesla, Inc.'s GF Value calculation is $254.24, indicating that based on its current trading price of $348.95, the stock is currently overvalued by 37.3%. Such a significant valuation deviation indicates that potential investors lack a safety margin. The company's trailing twelve months price-to-earnings ratio (TTM) is 323.1, far exceeding its 5-year median price-to-earnings ratio of 107.37. This stark contrast raises doubts about the sustainability of Tesla, Inc.'s current valuation level, and whether the market has already priced in unrealistic growth expectations. In addition to GLJ Research's extremely bearish expectations, other mainstream Wall Street institutions also express various degrees of concern about Tesla, Inc.'s growth prospects. Morgan Stanley analyst Ryan Brinkman previously reiterated an "underweight" rating on the stock and lowered his target price to $145, emphasizing that investors should be highly vigilant of the risks posed by continued profit margin contraction. Even more aggressive hedge fund managers, such as Per Lekander of Clean Energy Transition, have publicly stated that Tesla, Inc. is the "biggest bubble in modern history," and even predicted that its stock price could fall to $14. While supporters of Tesla, Inc., such as Dan Ives of Wedbush Securities, still hope that artificial intelligence and Optimus Siasun Robot & Automation can reshape the company's value, the gathering of short sellers undoubtedly puts unprecedented pressure on Tesla, Inc. for a valuation reshaping in 2026. It is worth noting that over the past three months, there has been significant insider selling activity, with insiders selling approximately $20.9 million worth of stock. This trend may indicate a lack of confidence from company executives in the future performance of the stock.