Tesla’s Stock Drops 6% as Analysts at Baird Suggest Musk’s Involvement with the Government
As another investment company lowered its price objective on the stock, Tesla’s (TSLA) shares fell 5.6% on Thursday, bringing its year-to-date losses to 35%.
In a note released Thursday morning, Baird analysts cut their 12-month view on Tesla shares from $440 to $370, citing worries that Wall Street has unrealistic expectations for Tesla’s first-quarter deliveries.
The company raised worries about manufacturing delays for Tesla’s upcoming Model Y and the possible harm that Elon Musk’s government intervention may have to the demand for the EV manufacturer.
Baird’s team said, “We believe there is a risk to the consensus Q1 delivery estimate of 437.5K based on intra-quarter sales data from TSLA’s key regions.” “The supply side of the equation is complicated by the Model Y refresh’s production outage, while the demand side is made more uncertain by Musk’s affiliation with the Trump administration.”
The action was taken only days after Bank of America reduced its price objective for Tesla stock from $490 to $380, citing disappointing European sales and “sentiment on the brand potentially souring.” February was the second-worst month on record for the shares of electric car manufacturers.
For the first time in 2024, yearly EV deliveries fell, according to Tesla’s January financial release. This week’s data from China revealed that Tesla’s exports from the nation had drastically decreased, which exacerbated the unfavorable attitude. Gains after US President Donald Trump was elected in November have also been undone by the stock’s current decline.
While investors anticipate a more relaxed regulatory environment for Tesla due to Trump’s win, Musk’s political ventures have been criticized domestically and internationally.
