A Tesla short-seller named two auto stocks that he believes have the potential to deliver 100% upside for investors. Per Lekander, managing partner at investment management firm Clean Energy Transition , is bullish on Mercedes Benz and Stellantis despite the challenges faced by these companies in the electric vehicle market. Lekander, who holds a short position in Tesla shares, has said the EV carmaker could "go bust" while its stock could fall to $14.
line 2022-04-03 Despite their strong performance, both Stellantis and Mercedes are trading at about six times forward price-to-earnings ratio , which Lekander believes is a significant undervaluation. Meanwhile, Tesla continues to be valued at nearly 60 times next year's earnings. He attributed this to the unreasonably rosy expectations surrounding Tesla and the EV market, which has led to a pessimistic outlook for traditional automakers.