Analyst predicts 29% downside potential for Tesla stock based on lower Q1 numbers.

From Nasdaq: 2024-04-06 03:30:00

Tesla (NASDAQ: TSLA) reported lower-than-expected first-quarter production and delivery numbers, causing shares to plummet further. Analysts predict more downside potential, with Bernstein maintaining a $120 price target, 29% below the current price of around $170.

CEO Elon Musk had previously warned of challenges ahead, including slow sales due to rising interest rates and a transition to a new manufacturing platform in 2024. Despite these hurdles, Tesla ended 2023 with more cash than debt and a higher profit margin than major auto manufacturers.

Investors may see Tesla stock hit new lows this year, but long-term investors could benefit from the stock’s typical behavior of falling on weak deliveries and rising during times of high demand. It’s worth considering for patient investors with a focus on long-term growth opportunities.



Read more at Nasdaq: Tesla Stock Has 29% Downside, According to This Wall Street Analyst