Following the decline in sales in the Chinese market in February and the suspension of production activities in German factories due to power outages, Tesla faced another bearish outlook - Wells Fargo Bank downgraded its stock rating to "underweight".
On March 13th local time, Tesla closed down 4.54%; Since March 4th, Tesla has experienced a cumulative decline of 16.36% in the 8 trading days, during which its total market value has evaporated by a total of $105.615 billion, equivalent to approximately RMB 759 billion.
On March 13th local time, Tesla opened low and closed low. According to Wind data, as of the close, Tesla fell 4.54%, with its latest stock price at $169.48 and a total market value of $539.758 billion. The market value evaporated overnight by $25.671 billion, equivalent to approximately RMB 184.6 billion.
On the news front, Wells Fargo Bank downgraded Tesla's stock rating to "underweight" and lowered its target price from $200 to $120. The reason is that the company's price reduction strategy is gradually weakening the boost to demand. This is currently one of the lowest target prices offered by Wall Street for Tesla. This means that Wells Fargo believes that Tesla stocks still have about 30% room for decline. Previously, Colin Langan, an analyst at Wells Fargo, referred to Tesla as a "growth company without growth.". According to market news, a total of six large institutions have conducted rating analysis on Tesla since March, with four lowering their target prices, one raising their prices, and one remaining unchanged. The average target price for Tesla from 120 institutions is $203.
In addition, UBS has lowered Tesla's target price from $225 to $165, maintaining a neutral rating.
It is worth noting that there have been frequent bearish news about Tesla recently. On March 4th local time, Tesla closed down more than 7%. Analysts say that the sharp drop in Tesla's stock price on that day was related to its sales hitting a new low in over a year in the Chinese market in February.
According to preliminary data released by the China Association of Automobile Manufacturers, Tesla's wholesale sales in the Chinese market fell to 60365 units in February due to the impact of the Spring Festival holiday and intensified price wars in the electric vehicle market. This is the lowest level since December 2022, with a month on month decrease of nearly 16% and a year-on-year decrease of 19%.
On March 5th local time, Tesla's super factory located in the southeast of Berlin, Germany, suspended production activities due to power outages. During the shutdown period, over 1000 vehicles were unable to be taken offline every day, and the fire caused losses of at least hundreds of millions of euros to Tesla. According to the local broadcasting company RBB on March 13th, the factory resumed production of electric vehicles on the same day.
In the 8 trading days since March 4th, Tesla has experienced a cumulative decline of 16.36%, during which its total market value has evaporated by a total of $105.615 billion, equivalent to approximately RMB 759 billion.
Goldman Sachs analysts believe that the main adverse factors faced by Tesla include a larger than expected decline in car prices, increased competition in electric vehicles, and delays in products and functions such as FSD and third-generation platforms. Therefore, although the company has long-term growth potential, it faces significant risks in the short term.