Tesla Slides Over 2% Premarket: What's Dragging The EV Stock Today?
Portfolio Pulse from Shanthi Rexaline
Tesla Inc. (NASDAQ:TSLA) shares are down over 2% in pre-market trading after Wells Fargo downgraded the stock from Equal Weight to Underweight and slashed the price target from $200 to $125, citing concerns over disappointing deliveries, more price cuts, and potential negative EPS revisions. Analysts predict flat sales volumes in 2024 and a decline in 2025, along with lower lease residuals and a potential loss of the luxury brand premium. Tesla bull Gary Black of Future Fund warned about potential downward revision of delivery estimates, suggesting the current consensus estimate of 474,000 units for Q1 is too high and models a lower figure of 425,000 units.
March 13, 2024 | 11:55 am
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Tesla Inc. faces a downgrade from Wells Fargo, with a significant price target reduction from $200 to $125, amid concerns over disappointing deliveries, price cuts, and potential negative EPS revisions.
The downgrade by Wells Fargo and the significant reduction in price target are likely to exert downward pressure on Tesla's stock price in the short term. Concerns over disappointing deliveries and price cuts, as well as the potential for negative EPS revisions, are critical factors that could negatively impact investor sentiment and Tesla's financial outlook. The pre-market trading activity, showing a 2.01% drop, already reflects the market's reaction to the downgrade.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100