Analyst Calls Elon Musk a Charlatan and Terms Tesla Stock Worthless
Tesla is often regarded as one of the most innovative companies in the world and for the right reasons, considering the fact that it remains one of the biggest pioneers in the electric vehicle industry. By the same token, its founder Elon Musk has also acquired a cult-like following all over the world and is regarded as one of the world’s most important tech leaders. That being said, it is also important to keep in mind that there are plenty of critics of both the company Tesla and its founder Elon Musk.
Over the years, plenty of analysts have had harsh words for the company, but nothing has been as harsh as the assessment provided by William Smith of Blaine Capital, who stopped short of calling the company a scam. The company has been in the middle of a prolonged drop for some time but on Tuesday, the company’s shares appreciated by 8%, but at the same time it is important to remember that Tesla’s shares remain at its lowest levels in five years and is still trading under $200. William Smith called Elon Musk a charlatan and went on to state that the company’s stock is worthless.
While speaking to CNBC, Smith stated,
We’ve been short Tesla since the low 300s. We believe that the company is going to have to restructure […] We believe the company is going to be zeroed out, it’s going to be worthless as far as the equity is concerned. They have very poor management, Elon Musk is not a genius, he’s not a visionary, he’s a charlatan, he’s a carnival barker.
However, that was not the end of his criticism with regard to Tesla. Smith also added that the cars that are being manufactured by the company are not reliable either since the cars keep going up in flames and the batteries get incinerated quite frequently. It is an unprecedented attack on the company from an analyst in many years, and it remains to be seen how Tesla responds to it.