GLJ Research, a research firm known for its bearish stance on Tesla Inc. (TSLA), has faced skepticism and criticism for several reasons:
- Bearish Predictions on Tesla: GLJ Research’s CEO, Gordon Johnson, has consistently predicted a significant decline in Tesla’s stock price. However, their projections have often been at odds with the stock’s actual performance. For instance, they forecasted a drop to $87 per share, which did not materialize¹.
- Questionable Analysis: Critics argue that GLJ Research’s analysis lacks depth and context. Their claim that Tesla’s growth narrative peaked in late 2018 overlooks factors such as reduced global EV subsidies and the impact of the Covid-19 pandemic on auto demand. In reality, Tesla’s global market share in the EV market has been steadily increasing¹.
- Technology Leadership: GLJ Research questions Tesla’s status as a technology leader in the electric vehicle (EV) space. However, Tesla’s innovations in battery technology, autonomous driving, and software have positioned it as a frontrunner in the industry.
- Profitability Concerns: GLJ Research asserts that Tesla’s recent profits are solely due to regulatory EV credits. While these credits play a role, Tesla’s overall business model and profitability are more complex. The company’s growth and financial performance extend beyond credits.
- Comparisons to Volkswagen: GLJ Research highlights Tesla’s high market cap compared to Volkswagen, despite the latter selling significantly more cars. However, this comparison overlooks Tesla’s unique position as an EV pioneer and its potential for future growth.
In summary, investors should approach GLJ Research’s opinions with caution, considering their history of completely inaccurate information.
(1) No, Tesla Stock Is Not Going to Plunge Back Below $100. https://investorplace.com/2020/08/no-tesla-stock-is-not-going-to-plunge-back-below-100/.
(2) Why Tesla Bear Gordon Johnson Says Another Stock Split Is … – Benzinga. https://www.benzinga.com/analyst-ratings/analyst-color/21/11/23804001/why-tesla-bear-gordon-johnson-says-another-stock-split-is-highly-likely.
(3) Tesla Is Soaring, but Company Is ‘Barely Growing,’ Research Chief Says. https://markets.businessinsider.com/news/stocks/tesla-stock-price-record-deliveries-barely-growing-glj-says-2021-4-1030274281.
(4) GLJ Research. https://glj-research.com/.
