Tesla (TSLA) stock fell Thursday, marking a new 52-week low, as the global EV giant received a downgrade based on Chief Executive Elon Musk’s decision to prioritize its robotaxi program over its cheaper next-generation vehicle.
X Deutsche Bank analyst Emmanuel Rosner downgraded Tesla stock Thursday to a hold rating from a buy.
Tesla stock dropped 2.4% to 151.67 during market action Thursday, hitting a fresh 52-week low of 148.70.
This comes after Tesla stock on Tuesday angled down 2.7% to 157.11, undercutting its previous 2024 low of 160.51 from March 14.
Tesla Stock Performance TSLA stock gained 3.7% to 171.05 last week, buoyed by Elon Musk’s promise of a robotaxi unveiling on Aug. 8.
Tesla Stock Has Plunged In 2024, But At Least It’s Cheaper, Right?
Tesla stock also has a 10 Relative Strength Rating and a 67 EPS Rating.
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Elon Musk, the CEO of Tesla (TSLA), decided to give his robotaxi program more priority than the company’s more affordable next-generation vehicle, which caused the stock of the electric vehicle giant to drop on Thursday, setting a new 52-week low.
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Tesla’s stock was downgraded from a buy to a hold rating by Deutsche Bank analyst Emmanuel Rosner on Thursday. Furthermore, citing the “high likelihood” of a delay for the $25,000 Model 2 and the company’s shift in strategic focus to robotaxi, Rosner cut the firm’s price target from 189 to 123.
The prior buy rating, according to Rosner, was predicated on Tesla’s next-generation car, which is expected to launch in late 2025 and cost $25,000. This vehicle is expected to enable the company to reaccelerate volume, margins, and free cash flow.
Rosner notes that “cracking the code on full driverless autonomy” is now seen as crucial to Tesla’s future and poses a “significant technological, regulatory, and operational challenge.”.
The focus now being placed on the robotaxi, the analyst continued, is “thesis-changing” and could experience a “potentially painful transition in ownership base” as EV investors “throw in the towel” and are eventually replaced by AI/tech investors with a significantly longer time horizon. “.
Thursday’s trading saw a 2 percent decline in Tesla stock to 151 points67, a new 52-week low that was reached at 148 points70. This follows a 2 point 7 percent decline in Tesla stock on Tuesday to 157 point 11, below its previous 2024 low of 160 point 51 from March 14.
According to the daily trade disclosures, Cathie Wood and her Ark Invest funds bought 20,683 Tesla shares on Tuesday and 66,504 TSLA shares on Wednesday. In 2024, Wood has been increasing Ark’s Tesla stakes. Cathie Wood has long supported Tesla’s efforts to promote autonomy and robotaxis.
The performance of Tesla stocks.
Elon Musk’s announcement that a robotaxi would be unveiled on August 7 raised TSLA stock last week, causing it to rise by 3.7 percent to 171 points. 8. Tesla’s stock fell 6.2 percent the week before, and Cathie Wood bought almost 453,000 shares.
Following a roughly 13% decline in March, TSLA shares are currently trading below the 50-day moving average.
That’s right, the price of Tesla stock has dropped in 2024, but is it still cheaper?
Ahead of Tuesday’s Q1 earnings call, analysts and investors will be waiting to hear about Musk’s plans for the robotaxi and the next-generation car.
Estimates from analysts indicate that Q1 earnings will decrease by approximately 42.5 percent to 49 cents per share, while sales will drop by 42.5 percent to $222.6 billion. The lowest quarterly level since the EV giant hit 48 cents per share in Q2 2021 would occur if Tesla’s Q1 EPS data is as anticipated.
Tesla announced in the beginning of April that while it produced 433,371 vehicles, its first-quarter global deliveries came to a total of 386,810. A total of 369,783 Model 3 and Model Y units as well as 17,027 “other” vehicles were delivered. The lowest quarterly deliveries since 344,000 in Q2 2022 were made by Tesla in Q1, with 386,810 deliveries, exceeding even the lowest projections.
The largest electric vehicle manufacturer attributed the first-quarter results to problems with the updated Model 3’s production ramp-up and factory closures.
Within the 35-member industry group IBD Auto Manufacturers, the EV behemoth comes in at number eight. With a maximum Composite Rating of 99, the stock currently has a score of 32. Additionally, Tesla’s stock has a 67 EPS rating and a 10 Relative Strength Rating.
For more coverage, please follow Kit Norton on X, formerly known as Twitter, at @KitNorton.
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