Trading veteran makes major Tesla stock prediction

Renowned trading veteran, Boris Schlossberg, has shared intriguing views on the future direction of the Tesla stock price.

The former Wall Street trader, who for many years has been live streaming his day trading activities to a large global following, believes Tesla (NASDAQ: TSLA) won’t see its all-time-high of $1229.91 ever again.

“I am convinced, that just like Cisco (NASDAQ: CSCO) never saw its dot com era highs, Tesla will never see $1,200 again as a stock,” said Schlossberg on The Market Huddle podcast.

“My argument for why…It’s not the company, Cisco has been a great company for 20 years it was just grossly overvalued and it could never grow back into the kind of ridiculous valuation it had, which is the exact same thing with Tesla.”

Tesla stock reckoning to come as market wakes up to EV competitors

Schlossberg says the rapid innovation by incumbent auto manufacturers, such as Ford (NYSE: F) is one of the major reasons behind his bearish Tesla stock prediction.

“What’s happening right now in the whole EV space is Ford is really coming on board. To me the absolute stake into Elon’s heart will be if the Ford F50 EV model, which is already going to three lines because they can’t keep up with demand, becomes a hot seller.

“Because it radically changes the whole idea of what a car is like, in the sense that it’s not just a car, it becomes a power generating plant for people who are in it.

“It’s going to just create a massive amount of alternative choices… It’s going to pressure the margins.

“The Tesla truck is a joke right? It something that a hipster in Brooklyn would buy as a truck, it’s not something that any real person who needs a truck, like the contractors at my house, would buy.”

Cult following to end

Schlossberg added he anticipates the cult following that has surrounded Tesla and its CEO, Elon Musk, will fade in the coming years.

“So to me, the interesting story here is now that all these companies (Tesla competitors) are going to bring supply onto the market, there’s going to be this massive amount of supply of electric vehicles on the market, how will Tesla work when it becomes just a car company instead of a fanboy company? I think that’s going to put pressure on the stock going forward.

“People are still thinking of the myth of Elon Musk but I think what’s going to be happening in the next year or two, you’re going to see a much more realistic sober assessment of the automobile industry going forward.”

Year-to-date, Tesla’s stock price has fallen around 27 percent. However, since the start of 2019 it is up around 1,200 percent.