The stock fell on Monday, as an early bullish analyst offered a further downward trend in the electric car manufacturer's stock.
The Tesla Share (TSLA) fell as much as 7.4% before gaining ground again, closing at $ 205.36 a share of 2.7% for that day. The losses came after Wedbush Daniel Ives received a neutral rating on Sunday and lowered its price target for Tesla shares from $ 275 to $ 230, below the FactSet average of approximately $ 301 was.
In December, Ives began reporting on the company with an outperform rating and a target price of $ 440. At the end of April, he downgraded the stock to the current rating. The last price cut is his fourth.
The Tesla share, which fell more than 35% at the close on Friday in 2019, fell 11% this month, moving to a new year low.
The Sunday note has essentially highlighted a handful of bearish concerns, taking into account concerns about demand and profit margins, as the company wants to expand its market globally in an intensified competition and draw attention to other potential longer-term revenues, such as: , B. robot taxis and insurance.
The lowered price target, said Ives, stems from "reduced confidence" in Tesla's ability to deliver as many cars as the company promised in 2019.
"With a code-red situation at Tesla, Musk & Co. is expanding into the areas of insurance, robotics, and other science fiction projects / projects, if the company is to focus instead on the core demand for Model 3 Strengthen and simplify In our opinion, business model and cost structure abound.
A Tesla spokesman did not immediately respond to a request for comment.
The company, which recently raised money with a move that reassured some investors, has reportedly started a round of intensive cost management. An important stakeholder cut its stake in the first quarter.
"It is important to improve Tesla's profitability in the third and fourth quarters and beyond, which has so far relied on mixed signs of demand for Model 3 in the area [is] and has become increasingly difficult," Ives wrote.