Tesla Corporation Stocks kicked off 2023 with a nearly 4% drop on Tuesday, extending a sell-off since their worst year as growing concerns about weakening demand and logistical issues hampered deliveries. row.
The latest slide in prices comes after the world’s most valuable automaker missed its fourth-quarter delivery estimates despite shipping a record number of vehicles.
At least four brokerages have slashed their price targets and earnings estimates, seeking more downside after the stock suffered its biggest annual loss since going public in 2010. .
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Brokerage JP Morgan said in a note that the results “are at the expense of higher offers, indicating lower prices and profits,” brokerage JP Morgan said in a note, also lowered the price target from $25 to $125.
Shares of the electric vehicle maker traded at $118, after losing 65% of its market value last year. The company with the highest market capitalization of over $1 trillion, currently has a valuation of around $390 billion.
That still makes it the world’s most valuable automaker, even though its output is a fraction of that of rivals like
Toyota Motor Corp of Japan.
Wedbush Securities analyst Dan Ives said: “Demand in general is starting to drop a bit for Tesla and the company will need to adjust and lower prices more, especially in China, which remains key. key to the growth story”.
Global automakers have over the past few months grappled with a slowdown in demand in China, the world’s largest auto market, where
The spread of COVID-19 has affected economic growth and put pressure on consumer spending.
Tesla has tried to deal with the pressure by slashing domestic prices sharply, as well as subsidizing insurance costs.
The automaker also plans to implement a reduced production schedule in January at its Shanghai plant, extending already-declined output starting from December into 2023, Reuters reported.
(Reporting by Aditya Soni and Eva Matthews in Bengaluru)
