Tesla's stock experienced a sharp decline to a 15-month low in pre-market trading on Thursday following a downgrade from Deutsche Bank. The investment bank lowered Tesla's stock rating from Buy to Hold, while also reducing the price target from $180 to $123 per share.
Deutsche Bank cited significant risks associated with Tesla's pursuit of full driverless autonomy and the delay of its Model 2 launch. The bank expressed concerns about the company's strategic shift towards Robotaxi and emphasized the challenges Tesla faces in cracking the code on full autonomy.
The downgrade underscores investor apprehension about Tesla's future trajectory, with Deutsche Bank warning of potential downward pressure on earnings estimates beyond 2026. Additionally, other analysts have expressed skepticism about Tesla's near-term performance, expecting a Q1 miss and highlighting concerns about plateauing electric demand and increased competition, particularly in China.
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