Tesla is the biggest stock bubble in history and shares are headed to $15, short seller says

• Tesla's valuation is far too high, according to short-seller Per Lekander.
• Lekander predicted the EV maker's stock would plunge to $15 a share, implying a 91% decline.

Tesla stock is wildly overpriced and could soon face an extreme correction, according to short-seller Per Lekander.

"In my view, Tesla is the biggest stock market bubble in world history," The Clean Energy Transition CEO said in an interview with Yahoo Finance last week. "The models are aged, and valuation is absolutely insane. Earnings are falling off a cliff," he added, estimating Tesla's earnings could fall as much as 50% this year.

Lekander, who has been shorting Tesla stock since 2020, echoed other Tesla bears, who have criticized the stock's lofty valuation and predicted a coming correction. The company's sales were far below expectations last quarter, indicating that the carmaker is struggling with anemic demand and rising competition in the electric vehicle space.

The company also faces risks from multiple ongoing lawsuits, as well as its big compensation packages for Tesla's board, Lekander said.

"I think, given that there is no growth here — 10 times earnings is very generous — my price target is $15 … I think this is hugely dangerous," he said.

Lekander's price target implies a 91% crash from Tesla's current levels, which he predicted could come as soon as the company reports its second-quarter results.

Deliveries will likely improve given Tesla's dismal first-quarter production results, but the carmaker's profits will be "absolutely terrible," Lekander said.

"There is a chance the company will be loss-making," he said.

If the company reports losses for two quarters in a row, the stock could easily see losses in the double-digits, Lekander predicted.

"Once it goes down, it's going to go down more … I think we are very, very close to the turning point, because so far it's been a slippery slope," he said.