Gordon Johnson Defends Tesla Short Thesis As Margins Shrink, Discounts Rise: Jim Chanos Notes 35% YTD Drop In San Diego County Sales

Analysts Gordon Johnson and Jim Chanos are intensifying their critical stance on Tesla Inc. TSLA, citing significant challenges in the electric vehicle manufacturer’s performance and market position.

What Happened: Johnson of GLJ Research launched a scathing critique on social media platform X, highlighting Tesla’s deteriorating financial metrics. “Tesla’s margins are imploding,” Johnson wrote, pointing to frequent discounts and what he describes as collapsing brand and market share across global markets including China, the United States, Europe, Canada, and Australia.

Johnson’s analysis suggests Tesla trades at 127x 2025 estimated adjusted earnings per share, compared to the Magnificent Seven tech stocks’ average of 32x. He emphasizes that Tesla is not truly a tech stock, with approximately 90% of its revenue derived from automobile sales.

What's been a "disaster" about the short thesis Charles? TSLA's margins are imploding, and getting worse by the day (it offers new discounts to move metal nearly daily). It went ex-growth last year (and will likely see neg. growth again this year). It's brand/market share are… https://t.co/1stfpActEJ pic.twitter.com/a1VDKFEdI0

— Gordon Johnson (@GordonJohnson19) March 24, 2025

Short seller Chanos amplified concerns by highlighting a 35% year-to-date sales drop in San Diego County, which he characterized as “material.” This figure significantly diverges from S&P Mobility’s more conservative estimate of an 11% sales decline.

Down 35% YTD in a conservative county in CA, is material. $TSLA https://t.co/rJN36EDsX0

— James Chanos (@RealJimChanos) March 24, 2025

See Also: Palantir Market Cap Surges Over $50 Billion In 2025: Won’t Be A ‘Seller,’ Says Analyst As He Foresees PLTR As An AI Play

Why It Matters: The ongoing debate between Johnson and Fox Business Senior Correspondent Charles Gasparino has further spotlighted Tesla’s challenges. Johnson notes that since 2022, Tesla’s stock has declined 30.4% while the S&P 500 has increased 20.2% during the same period.

Tesla’s upcoming first quarter of 2025 delivery report is anticipated to provide further insight into the company’s current market performance, with investors closely monitoring potential indicators of the company’s strategic direction and financial health.

Price Action: Tesla’s stock closed at $278.39, up 11.93% for the day. In after-hours trading, the stock rose an additional 1.43%, according to data from Benzinga Pro.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.