All hell broke loose during the weekend when Scott Galloway, a professor who teaches marketing at the NYU Stern School of Business and the author of Digital IQ Index, predicted that electric vehicle pioneer Tesla (NASDAQ: TSLA) would vanish, or lose 80% of its value within the next 10 years.
Even as Tesla fanboys expressed their disapproval of this prediction pointing out a large number of variables, Galloway said the Elon Musk-led firm lacks the scale to operate in a low-margin segment. He feels that the company won’t be able to reach a delivery target, where it starts gaining profits.
Notably, the prediction comes a week after Tesla fell short of market expectations on vehicle deliveries.
Galloway had earlier successfully predicted the merger of Amazon (NASDAQ: AMZN) and Whole Foods, which finally happened in 2017. However, his prior prediction on Tesla, where he said the company would get acquired within 2019 after the stock falls below $100 per share, has not come true.
There are four more companies on Galloway’s death list – WeWork, which recently postponed its IPO over overvaluation concerns, Lyft (NASDAQ: LYFT), which had a lackluster IPO, financial services firm Robinhood and the world’s third-largest hotel chain Oyo.
Further, he listed 10 unicorns as overvalued. These were Pinterest (NYSE: PINS), Snap (NYSE: SNAP), Twitter (NYSE: TWTR), Peloton, Slack (NYSE: WORK), DoorDash, Lime, Palantir, Uber (NYSE: UBER) and Compass (NYSE: CODI).
Apart from being a professor, Galloway is also the founder of business intelligence firm L2 Inc, which was bought by Gartner in 2017.