San Francisco, California – Tesla stock hit a new 52-week low on Thursday as it opened below its late April 2023 low. The electric vehicle powerhouse received a downgrade from Deutsche Bank analyst Emmanuel Rosner, who cited CEO Elon Musk’s decision to prioritize the robotaxi program over the cheaper next-generation vehicle. This shift in focus prompted Rosner to lower the firm’s price target and rating.
Rosner’s downgrade was influenced by the delay expected in the release of Tesla’s $25,000 Model 2 and the company’s strategic pivot towards the robotaxi program. Previously, the buy rating was based on the anticipation of Tesla’s next-generation vehicle hitting the market in late 2025. However, the focus is now on achieving full driverless autonomy, which poses significant technological and operational challenges. Rosner highlighted the potential impact of this shift on Tesla’s ownership base, as well as the transition in investors from EV to AI/tech.
Tesla stock experienced a 2.6% decline on Thursday, reaching a new 52-week low. This downward trend continued from the previous trading days when TSLA dropped on Wednesday and Tuesday. Meanwhile, prominent investor Cathie Wood of Ark Invest increased her stake in Tesla with significant purchases on Tuesday and Wednesday. Wood has been bullish on Tesla’s autonomous driving efforts and the potential of the robotaxi.
The recent performance of Tesla’s stock reflects the uncertainty surrounding the company’s strategy, particularly with Musk’s upcoming announcement on the robotaxi and next-generation vehicle during the Q1 earnings call next Tuesday. Analysts are expecting a decline in Q1 earnings, with projections indicating a decrease in both earnings per share and sales compared to previous quarters.
In early April, Tesla reported lower-than-expected first-quarter deliveries, attributing the performance to production challenges with the updated Model 3 and factory shutdowns. Despite these setbacks, Tesla remains a key player in the Auto Manufacturers industry group, ranking eighth out of 35 members. The stock’s Composite, Relative Strength, and EPS ratings provide additional insights into its performance within the market.
As investors and analysts await Tesla’s next moves, the company’s performance in the coming quarters will be crucial in determining its trajectory within the competitive electric vehicle market. Stay updated on the latest developments by following industry experts and analysts for in-depth coverage and insights.