Deutsche Bank cut its price target on Tesla (NASDAQ:TSLA) stock to $123/share, a 35% reduction.
It’s just one of several downgrades hitting Tesla before earnings. It comes after CEO Elon Musk demanded the company move its headquarters to Texas and approve rejected by a Delaware Chancery Court.
TSLA stock fell 2.5% overnight and opened this morning at about $151.25 per share, a market capitalization of $485 billion.
Analysts Fall Out of Love
Wells Fargo downgraded Tesla just last week, calling it .
Longtime Tesla bull Dan Ives of Wedbush says the bears are “piling on,” insisting the stock will rise again . He considers the present weakness a buying opportunity.
Whether you think Tesla can rise again . Musk says the company is “all-in” on the self-driving car and is delaying cheaper models to focus on it.
Much of the Tesla action is now focused on its Texas factory. The leaders of its battery production unit there . A project called NV9 aimed at producing a $25,000 car is being delayed.
Instead, Tesla is building a data center there to help the robotaxi project. As one writer put it, “Elon is putting all of Tesla’s eggs in the same basket and that basket is called
The strategic changes at Tesla come ahead of its April 23 conference call, which may be a disaster. China is building cheaper electric vehicles (EVs). Toyota (NYSE:TM) is proving hybrids are the new hotness. Even Rivian (NASDAQ:RIVN) has a better truck.
TSLA Stock: What Happens Next?
Whether you buy or sell TSLA stock now depends more than ever on your view of Elon Musk. Facing an existential crisis, he has taken the wheel. If he succeeds, he’ll be well worth the huge pay package.
But for the first time in years, there’s a good chance he may crash and take your investment with him.
On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
