Wells Fargo downgrades Tesla due to concerns over price cuts affecting demand

From Nasdaq:

Tesla shares dropped 2% as Wells Fargo downgraded them to “underweight” due to concerns over price cuts impacting EV demand. The stock has lost $200 billion in market value this year. Tesla’s price target was slashed to $120, one of the lowest on Wall Street. CEO Elon Musk warned of lower growth in 2024.

Despite lagging other tech stocks in 2024, Tesla has the highest forward P/E ratio of 52. Analysts have lowered earnings estimates by 10.8% in the past 30 days. The average Wall Street rating is “hold,” with many analysts predicting demand will stabilize later in the year. Tesla stock hits a 10-month low at $173.45.

Wedbush analyst Dan Ives states that the brutal price wars in China are subsiding, offering hope for the EV market in 2024. Tesla now has the highest number of bearish ratings among brokerages since July 2022. The stock struggles near a 10-month low amid ongoing market challenges.



Read more at Nasdaq: Tesla slips as Wells Fargo warns of waning effect of price cuts over demand