Tesla Stock Falls To Lowest Price Since Last January On Analyst Downgrade
Shares of Tesla sank again Thursday, this time following a downgrade from Deutsche Bank analysts panning Tesla’s apparent “thesis-changing” shift away from its core electric vehicle business, extending the stock’s brutal 2024 selloff.“The fact that Mr. Musk announced an unveiling of Robotaxi for Aug 8 in no way means the technology is ready,” declared Rosner, alluding to Musk’s social media post earlier this month indicating there will be an announcement on that date and subsequent post his company will be going “balls to the wall” in building out its controversial self-driving technology. “There is considerable execution risk” for robotaxis, and when the network actually hits the road “could be years away,” Rosner added. Tesla stock’s dim stretch coincides with a tough start to the year for other electric vehicle stocks—shares of smaller American competitor Rivian are almost 60% and shares of Chinese rival NIO are down over 50%—as the industry grapples with demand challenges globally. Tesla, which is the largest automaker in the world by market capitalization, has suffered from the twin blows of declining car delivery growth and shrinking profit margins. “Tesla has now moved into cash preservation mode,” judged Rosner, a dire proclamation for a company long heralded for its explosive growth perhaps reflected by its Monday announcement it will slash its headcount by more than 10%.
All data is taken from the source: http://forbes.com
Article Link: https://www.forbes.com/sites/dereksau...
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