Tesla's Rout Deepens as Analysts Trim Targets on Demand Concerns
(Bloomberg) -- More analysts covering Tesla Inc. are cutting their share-price forecasts, fueling a selloff in the stock after the electric-vehicle maker delivered fewer vehicles than expected last quarter despite offering hefty incentives in its biggest markets.
The shares plunged as much as 14% Tuesday, the biggest intraday decline since September 2020, after the company said Monday it handed over 405,278 vehicles to customers in the last three months, short of the 420,760 average estimate compiled by Bloomberg. That prompted multiple Wall Street analysts to reduce their price targets, resulting in Tesla’s lowest average 12-month target price since October 2021.
The fourth-quarter delivery miss will likely escalate concerns over near-term macro and competitive demand pressures, Citigroup Inc. analyst Itay Michaeli wrote in a note. “With sentiment already quite negative, an argument can be made that much of the bad news is already priced in.”
Another day of declines for Tesla extends the stock’s 37% plunge in December, its fifth month of losses. The company is facing less demand than expected as it ramps up production capacity amid concerns about Chief Executive Officer Elon Musk’s share sales and stretched leadership.
https://www.msn.com/en-us/money/companies/tesla-s-rout-deepens-as-analysts-trim-targets-on-demand-concerns/ar-AA15V9qp
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