Why Tesla Stock Is Getting Crushed Today
Shares of the electric-car maker Tesla (NASDAQ: TSLA) continued its struggles to open the week of trading, falling roughly 8.3% as of 10:17 a.m. ET today after a Wall Street analyst lowered his price target on the stock and maintained a sell rating.UBS analyst Joseph Spak cut his price target on Tesla by $34 to $225, and shares of Tesla traded around $240, as of this writing. The analyst lowered his first-quarter delivery estimates on the company from 437,000 to 367,000, citing lower demand among Tesla's Model 3 and Model Y in select markets. The 367,000 delivery estimate implies a 26% quarterly drop in deliveries and a 5% decline year over year.Spak's lower delivery estimate also implies that the company's gross margin in its auto business will decline by 330 basis points from the previous quarter to 10.3%, excluding credits. That would also be down from 16.4% in the first quarter of 2024.Continue reading
Shares of the electric-car maker Tesla (NASDAQ: TSLA) continued its struggles to open the week of trading, falling roughly 8.3% as of 10:17 a.m. ET today after a Wall Street analyst lowered his price target on the stock and maintained a sell rating.
UBS analyst Joseph Spak cut his price target on Tesla by $34 to $225, and shares of Tesla traded around $240, as of this writing. The analyst lowered his first-quarter delivery estimates on the company from 437,000 to 367,000, citing lower demand among Tesla's Model 3 and Model Y in select markets. The 367,000 delivery estimate implies a 26% quarterly drop in deliveries and a 5% decline year over year.
Spak's lower delivery estimate also implies that the company's gross margin in its auto business will decline by 330 basis points from the previous quarter to 10.3%, excluding credits. That would also be down from 16.4% in the first quarter of 2024.
