• 32
  • 11
  • 1

Tesla Stock Can Drop 34%? Here Is Why the Analyst Say That

Dow Jones2023-11-09

Tesla stock picked up a new bearish rating, and it had an impact in morning trading.

Tesla shares dropped more than 3% in morning trading.

Thursday, according to ratings-aggregation services, HSBC launched coverage of Tesla stock (ticker: TSLA) with the equivalent of a Sell rating and $146 price target, down about 34% from recent levels.

Barron’s doesn’t have the report. HSBC didn’t immediately respond to a request for a copy of its report.

The issue appears to be valuation. The analyst believes the electric-vehicle business isn’t worth what Tesla stock trades at today. What’s more, Tesla’s other businesses, including energy storage, self-driving cars, robots, and artificial-intelligence computing, all have regulatory hurdles that mean slower-than-expected growth in the future.

Tesla stock is worth some $700 billion at current prices. At HSBC’s target price of $146 a share, the company’s market capitalization would be worth closer to $470 billion.

Coming into Thursday trading, Tesla stock is down about 8% over the past three months. Investors are worried about slowing demand for EVs. Global battery-EV sales rose roughly 25% year over year in the third quarter, but that is a slower rate than earlier in the year. Also, there are simply more EVs for sale now, all vying for market share.

Overall, about 43% of analysts covering Tesla rate shares at Buy, according to FactSet. The average Buy-rating ratio for stocks in the S&P 500 is about 55%.

A new Sell rating doesn’t change the Buy-rating ratio, of course, but it changes the Sell-rating ratio. About 15% of analysts covering Tesla rate shares at Sell. The average Sell-rating ratio for S&P 500 stock is close to 5%. Analysts typically shy away from Sell ratings, and prefer assigning Hold ratings to stocks they don’t favor.

The average analyst price target for Tesla stock is about $239. Among the Buy-rated analysts, the average target price is roughly $290. Among Sell-rated analysts, the average target price is about $120.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment11

  • ninjainvest
    ·2023-11-10
    Even if TSLA drop, you can buy more cos it can recover.  
    Reply
    Report
  • Brother272005
    ·2023-11-10
    Maybe hsbc bank clients want to buy Tesla shares. Do not trust what they say, they are also investor. Buy low Sell high. 
    Reply
    Report
  • Targarean
    ·2023-11-10
    Hear hear 
    Reply
    Report
  • CaseyLKC
    ·2023-11-10
    I think we should look at long term investment instead of short term
    Reply
    Report
  • HLPA
    ·2023-11-10
    Do not worry on these nitty grittynprice movements every day if you are a long term trafer. Have conviction on the price you beloeve a stoxk will be after doing own due diligence. Analysts more often than not have an ulterior motive in writing these reports so do your research before you trade. Do not panic simply due to a report by one analyst. Believe in your buys after your DD. Hold and yourwill overcome these naysayers.
    Reply
    Report
  • Mr Bull
    ·2023-11-10
    such analyst simply create panic in retail investers and accumulate the stocks in parallel 
    Reply
    Report
  • Zzz...
    ·2023-11-09
    Ya...better drop 99.99%. Silly...
    Reply
    Report
  • Andrewinho
    ·2023-11-09
    Run!! 🤭🤭🤭
    Reply
    Report
  • GggSlimeR
    ·2023-11-09
    Thanks,Do not like my comment 
    Reply
    Report
  • Loma
    ·2023-11-09
    Reply
    Report
  • Coldastone17
    ·2023-11-09
    Every week we will have such analysis by some people who just loves to see tesla go way below the 200MA...obviously you know why? So tat they can buy in. Well I think with all these crappy analysis we will see tsla drop to $100!!😜
    Reply
    Report
 
 
 
 

Most Discussed

 
 
 
 
 

7x24

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email:uservice@ttm.financial