A growing chorus of Wall Streeters including Tesla stock is becoming more cautious about the name in 2023, added to a cruel month and year.
EvercoreISI analyst Chris McNally slashed his price target on Tesla stock to $200 from $300 on Tuesday, joining the bearish trend over the past week from Goldman Sachs, Wedbush, and Goldman Sachs. Oppenheimer.
“While we continue to view Tesla as having the leading EV gross margin advantage from global scale, vertical integration and US IRA [Inflation Reduction Act] It cannot be ignored that investors were well aware of these benefits but now ALSO have to contend with assumptions about the demand test for 2023-2025,” McNally said in a new note. for customers.
Tesla shares fell more than 2% in early trading Tuesday.
McNally added: “While the positive revision cycle may not last forever (the IRA is a powerful unit/margin amplifier), it’s hard to ignore Tesla’s popular thesis of transitioning. from 1) Unlimited Demand/Rev to 2) escrow ‘story’, which happened in the last 6-12 months.”
McNally made the decision after a frantic day for Tesla investors.
The EV maker’s shares opened Monday amid hopes CEO Elon Musk would step down along with a Twitter post.
“Should I resign as head of Twitter? I will follow the results of this poll,” Musk tweeted with his 122.1 million followers on Sunday.
The poll closed on Monday morningwith 57.5% of the 17.5 million votes “Yes.”
Musk has not revealed whether he’s actually stepping down.
Shares of Tesla ended Monday’s trading session slightly lower, reflecting the broader market.
“You need a Twitter CEO who isn’t Musk,” Ives said on Yahoo Finance Live on Friday. “This is what I mean by an unresolvable situation when he’s the CEO of Twitter and Tesla.”
The electric vehicle maker’s stock is down about 63% from its peak last November — biggest drop in stock since its launch in 2010 — and down 23% this month alone.
Most of the losses for Tesla investors began after Musk’s April offer to buy Twitter, a deal that ended in late October.
Brian Sozzi is an editor-in-chief and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and more LinkedIn.
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