Whitney Tilson: Tesla is 'out of bullets'

"Tesla is 'out of bullets' and will fall below $ 100," said Whitney Tilson, a former hedge fund manager.

Tesla has disappointed its investors and will plunge by over 60% by the end of this year.

In one of his speeches, Tilson said that most investors lost confidence in Musk, which would lead to big sell-offs of their shares.

On Thursday, Chief Executive Officer Elon Musk warned that Tesla may not be profitable in the first quarter of 2019 after it achieved two consecutive quarters of profits in the second half of last year, the first in the company's history. In February, Musk said the company would be profitable in the upcoming quarters.

Tesla also announced that it is switching to online sales and will close most of its 378 stores. Partly due to the move to online sales and other running costs, Tesla cuts the price of its Model 3, Model S and Model X cars by an average of about 6%, according to a blog post.

The company's announcement shows that Tesla has lost its rising speed, according to Tilson. "If Tesla had some strong cards, they would have played them on Thursday afternoon to mitigate the blow," he said. "I think they are out of b bullets.

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