Tesla Stock Could Be In For More Downside As 'Margin-Destroying' Price Cuts Not Producing Intended Effect, Says Analyst
Portfolio Pulse from Shanthi Rexaline
Analyst Gordon Johnson from GLJ Research predicts a potential downside for Tesla, Inc. (NASDAQ:TSLA) due to its 'margin-destroying' price cuts in China and Europe not producing the intended effect. Despite the price cuts, Tesla is expected to report a quarter-over-quarter decline in volume in Q3. Johnson also expects a downward revision to consensus estimates due to the ongoing price cuts. Tesla's stock ended Tuesday's session at $256.49, still way off its pre-earnings level of $291.26.
September 06, 2023 | 6:47 am
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Tesla's ongoing price cuts in China and Europe are not producing the intended effect, leading to a potential downside for the stock. The company is expected to report a Q3 volume decline and a downward revision to consensus estimates.
The analyst's prediction of a potential downside for Tesla is based on the company's ongoing price cuts not producing the intended effect. This, coupled with the expected Q3 volume decline and a downward revision to consensus estimates, could negatively impact the stock's performance in the short term.
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IMPORTANCE 90
RELEVANCE 100