Tesla’s stock, trading under the ticker symbol TSLA, has been on quite a rough patch lately. It’s been slipping for eight consecutive weeks and has kicked off another week on a downward trend. As of 12:12 p.m. ET today, the shares were trading at session lows, down 5.8%.
The iconic electric vehicle manufacturer has seen its value halve over the last quarter, sparking debates among investors about whether now is a good time to buy into the downturn.
### Analysts Weigh In on Tesla’s Challenges
Adding to today’s woes, a previously bullish analyst has trimmed their firm’s price target for Tesla by $85. Despite this adjustment, Vijay Rakesh from Mizuho maintains a positive outlook, though he’s revised the target price from $515 to $430. This update, as reported by Barron’s, still suggests a potential upside of over 80% for the stock, following its recent plummet. Rakesh continues to recommend buying the stock, although he acknowledges the impact that CEO Elon Musk’s political engagements and polarizing reputation have had on the brand’s stance.
In Rakesh’s words, “We believe Tesla’s sales challenges stem from geopolitical tensions, shifting brand perceptions in the U.S. and EU, increased competition, especially from China, and a weaker demand than expected for the revamped Model Y.”
Despite these concerns, the long-term growth prospects for Tesla remain a point of consideration for investors, even though Musk’s ventures outside Tesla make it difficult to quantify their impact on the company’s EV sales.
### Tesla’s Future Driving Forces
Musk, on his part, seems unfazed by these issues. He’s been vocal about the true worth of Tesla being tied to its self-driving capabilities. Musk has conveyed that those skeptical of Tesla’s path to achieving autonomous vehicles might want to reconsider their investment. The debut of Tesla’s much-anticipated Cybertruck is slated for this year, marking another milestone.
In Rakesh’s research note, there’s a hint of optimism. He states, “We continue to see Tesla as a frontrunner in the EV and autonomous vehicle sectors.” Should Tesla secure its dominance in self-driving technology, this could sway investors towards capitalizing on the current share price dip.
