A number of Wall Street analysts are reducing their price targets on Tesla (TSLA) shares following the EV makerโs underwhelming delivery report. The companyโs stock has plummeted over 30% this year, making it one of the worst performers within the S&P index. Guggenheim and Truist are among the firms that have downgraded their price targets on Tesla.
Concerns Raised by Guggenheim and Truist
- Guggenheim expressed confidence in negative catalysts such as delivery declines, structural risks in China, and potential risks related to the current political environment.
- Truist lowered its price target from $193 to $176, emphasizing the importance of the unveiling and sale of the next generation vehicle, which is currently shrouded in secrecy.
- Truist speculates that the new vehicle might resemble a Jeep-style design based on preliminary images of the prototype.
- They anticipate a decrease in annual unit delivery revenue and EPS estimates for the years 2024 and 2025 based on their analysis.
Web Bush Raises Concerns
Web Bush also highlighted concerns about Teslaโs future prospects in a recent note, suggesting that Elon Musk faces pressure to improve the companyโs performance. The combination of factors, including delivery misses and production challenges, has led to a cautious outlook on Teslaโs stock.
Hot Take: Wall Street Analysts Wary of Teslaโs Future
As Tesla struggles with disappointing delivery numbers, Wall Street analysts are lowering their price targets and expressing concerns about the companyโs prospects. The pressure is on Elon Musk to navigate through the challenges ahead and regain investor confidence.
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