– Tesla stock has dropped nearly 30% so far this year and has been downgraded by multiple Wall Street firms.
– Wells Fargo, Wedbush Securities, and Bernstein are the latest firms to lower their forecasts on Tesla, citing delivery disappointment, lower demand, and leadership conflict.
– The firms have cut Tesla’s price targets due to sluggish growth and weakening demand in key markets, despite optimism about the company’s self-driving and AI technologies.
Tesla stock has fallen by nearly 30% this year and has been downgraded by several Wall Street firms, including Wells Fargo, Wedbush Securities, and Bernstein. These firms attribute the downgrade to factors such as delivery disappointment, lower demand for electric vehicles, and leadership conflicts within the company. Despite the overall success of the stock market indexes, Tesla has experienced a significant decline in value over the past few months.
Wells Fargo analysts downgraded Tesla to “underweight” and lowered their price target from $200 to $125 per share. They anticipate a slowdown in demand for electric vehicles this year, leading to more price cuts by Tesla. Wedbush Securities still maintains an “outperform” rating on Tesla but reduced the price target from $315 to $300 a share. They pointed out Tesla’s challenging first quarter and supply issues as primary concerns.
Bernstein also lowered Tesla’s price target to $120 a share and forecasted tepid growth for the company in 2024 and 2025. They noted slowing EV adoption in Europe and the US, as well as weak demand in China, as factors affecting Tesla’s production forecasts. Despite Tesla’s high stock valuations, Bernstein believes it is difficult to justify given the company’s growth prospects and competition in the autonomous driving space.
Overall, Wall Street firms have expressed concerns about Tesla’s ability to maintain growth and profitability in the face of changing market conditions and internal challenges. Despite some optimism about its future technologies, Tesla’s stock has been subject to significant volatility and downward pressure in recent months.