Tesla Stock Drops, Analyst Downgrades EV Giant


After a big start to the year, Tesla’s (TSLA) stock has been going down. On Wednesday, TSLA shares were downgraded because of this. The electric car giant is also being looked at for possible steering wheel problems.

The National Highway Traffic Safety Administration (NHTSA) said Wednesday that it will look into reports that steering wheels can fall off Tesla Model Y cars while they are moving.

The NHTSA is looking at about 120,000 Teslas for the 2023 model year. Two people told the agency in charge of car safety that their steering wheels came off the column while they were driving. The NHTSA says that when the owners got the cars, the bolt that holds the steering wheel to the column was missing.

Tesla stock dropped 3% to 182.00 Wednesday during market trade. Tuesday, shares fell 3.1% to 187.71, and in March, they are down about 11.5%. Before TSLA’s fall, its shares had shot up, doubling from the 101.81-point low of the bear market on January 6.

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Wednesday was also the day that investment bank Berenberg changed Tesla’s rating from “buy” to “hold.” Analyst Adrian Yanoshik also raised his price target for TSLA from $200 to $210. That’s about 12% more than where the price ended on Wednesday.

The Berenberg analyst said that cutting the prices of Tesla cars will hurt gross margins in the short term, but he still thinks that margins will be high in the long term.

Yanoshik also said that the market seems to have accepted “misplaced fears of a price war,” and that volume opportunities will increase when Tesla’s cheaper next-generation vehicle comes out. The analyst also says that Tesla’s price “leaves less room for disappointment” than it did before.

Berenberg downgraded Tesla stock after Jefferies raised the firm’s price target for Tesla stock from 180 to 230 on Monday. Jefferies kept its “buy” rating on TSLA shares. Analyst Philippe Houchois wrote that the fact that Tesla didn’t announce any new products at its investor day doesn’t mean that the company’s growth will slow down significantly.

Tesla Stock

On Tuesday, more than 3% of TSLA stock was lost. Now, Tesla stock is just below the moving average for the last 21 days. TSLA is down 8% from last week and 11.5% from last month.

After a huge run to start the year, Tesla’s stock has stopped below its 200-day moving average. Those who are willing to take risks could buy at 217.75. Expert analysis shows that for Tesla stock to be safe, it should clear the 200-day line, which is now around $220.

IBD’s Auto Manufacturers industry group ranks the global EV giant fifth. IBD keeps track of 197 industry groups, and this group is No. 65 out of those.

The overall score for Tesla is 73 out of 99. The stock’s Relative Strength Rating is also 19. The score for EPS is 99.

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