‘Watch out Tesla believers’: Critics are piling on to warn the 300% stock rally will crash and burn

  • shares have soared 300% in six months, hitting an - high of over $900 on Tuesday.
  • Investors, analysts, and are warning investors the rally won’t last.
  • “I have no doubt it end in tears for many ,” one investor said.
  • Visit Insider’s homepage for more .

Tesla shares have surged about 300% in the past six months, hitting an all-time high of over $900 on Tuesday. , analysts, and politicians are lining up to warn investors that the run up won’t last.

“This is obviously a -generated rally, it’s not a reflection on the , or on . It’s just a ,” Andrew Left, the activist short seller behind Citron , told MarketWatch .

, I’m shorting it … whoever bought it at these prices has to flush it out, and when it flushes, it’s going to flush hard,” he added.

Left’s comments came after Citron blasted the stock rally as unsustainable.

“We believe even Elon would short the stock if he was a ,” the -research publisher tweeted on Tuesday. “This is no longer about the , it has become the Wall St casino.”

Others have warned Tesla’s rally will those left holding the stock when the stops.

“This is an incredibly dangerous place to be buying the stock and I have no doubt it will end in tears for many people,” and Jani Ziedins wrote in a recent post on his Cracked Market blog.

“Owning a stock that’s tripled over the last few months is , but don’t mistake serendipity for skill,” he continued. “While the fools are spending all of their time daydreaming about what they will buy when the stock breaks $1,200, is their stock to those greedy dreamers.”

Maley, market at Miller Tabak, echoed those sentiments in a CNBC this week.

“This is taking Tesla well above a level that would be by its current fundamentals,” he said. “The stock is going to get absolutely clobbered at some point before .”

Even former Ralph Nader sounded the alarm, warning Tesla could take down the entire .

“When the stock market bubble implodes, it will have been started by the surge in Tesla shares beyond speculative zeal,” he tweeted.

out Tesla believers,” he added in a follow-up tweet.

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