Price Target For Tesla Stock Cut By 33 As All Hopes Are Set On Model 2

last updated on

Price Target For Tesla Stock Cut By 33 As All Hopes Are Set On Model 2

Price Target For Tesla Stock Cut by 33% As All Hopes Are Set On Model 2

Investment banking company 'Evercore' has slashed the Tesla stock price target as there are rising concerns about the company's declining share in China and Europe.

With less demand in the EU and Chinese markets, it simply means that the revenue of Tesla will also drop and remain depressed for the foreseeable future. For now, Evercore believes that the new price target for Tesla stock is now $200, which was initially set at $300.

Even with a downgrade in the future price target, the $200 price level still presents an upside of 40% from its current levels.

Tesla Stock under Pressure

On a global scale, there is no doubt that Tesla is still a major EV player, as evident from its gross margin numbers. In addition, the company will also benefit from vertical integration and even from the recent inflation reduction act by the USA.

But analysts believe that these benefits are already pretty obvious to investors. So, for now, the investors are looking for some new bullish news about Tesla to put in additional money.

This year has been really tough for Tesla as its CEO has entangled himself with Twitter. On top of that, he also continues to sell Tesla shares which are damaging the investor's sentiment.

When compared with the prices from November 2021, around 60% value of the Tesla stocks has already been wiped out. At the time of writing this, Tesla stocks were trading near the $142 level.

For now, the biggest challenges faced by Tesla are the slow demand in China and Elon Musk's involvement in Twitter. Ever since his takeover of Twitter, Elon Musk has been putting money into the social media company at the expense of Tesla. Both of these factors are very bearish for Tesla and are even damaging Elon Musk's brand.

According to Evercore, there is still a way for Tesla to jump back into action, and it is the Tesla Model 2. Available information suggests that the price point of Model 2 will be more affordable and thus will attract more consumers. For now, the rumored price of Model 2 is set at $25000, which will be the lowest price car from Tesla.

Trending Stories