Over the past four trading weeks, Tesla shares have dropped more than 25% to a 5-year low at $190 per share as of the 24th of May. In the next 12 months, things could get a lot worse. If its stock falls below $100, the company could be acquired by a more prominent company, thereby forcing Elon Musk, it’s CEO to work for someone else for the first time.
At least, that is the picture painted by a New York University marketing professor, Scott Galloway who is known for his blunt but usually on-point analysis of the hottest tech companies. In an interview with Yahoo Finance, he was asked what the future holds for the embattled company, and he boldly claims that the electric carmaker will be done this year.
He predicted that Tesla could get cut in half, pointing out that the company current stock price is only half of what it was about a year ago. Besides the company, obvious problems like falling market demand and disappointing first-quarter deliveries, the professor who owns a Tesla Model X said he was deeply troubled by Tesla disastrous senior level turnover.
He predicted that the stock would keep diving to under $100 and said by then it would get acquired.
Galloway believes Apple will be in the lead when a takeover is on the table. He said it makes sense from a product standpoint because Apple is the premier institute for developing tech hardware, and you would argue that the company’s products (Tesla) are premiere tech hardware.
Actually, Apple has reportedly considered projects in the self-driving car industry for some years – in 2013, Apple even showed a specific interest in buying out the electric carmaker for $230 per share. Craig Irwin, Roth Capital Partners analyst, told CNBC two weeks ago. However, according to a private meeting between Morgan Stanley and its institutional investors, the acquisition of Tesla by tech companies like Amazon or Apply is highly unlikely, Yahoo Finance reports.
