Tesla Inc. (NASDAQ: TSLA) saw some rekindled pressure on its stock on Tuesday, and it wasn’t even from a rogue tweet from CEO Elon Musk. Tuesday’s top analyst upgrades and downgrades showed that Barclays has reiterated its Underweight rating and lowered its price target for the stock to $192 from $210.
While other analysts are still bullish on Tesla’s future, this now appears to be the lowest sell-side analyst price target on Wall Street.
Brian Johnson of Barclays believes that the move toward lower-priced Model 3s and the recently communicated store closures are undermining the bullish thesis. Remember that Barclays has been among the more bearish of Tesla’s research crowd. With Tesla having been called “the next Apple” by selling higher-priced electric vehicles with high gross margins, the lower price point is undermining the secular growth story here.
One worry about the price and cost cuts is that it suggests the need to replenish cash rather than talking about the dramatic progress being made on manufacturing and distribution costs.
Since Musk dialed down the view that Tesla would be profitable in the first quarter instead of the second, there have been more concerns about what might happen to Tesla’s cash balance if or when it pays down its debt.
Tesla’s stock traded down 4.8% at $271.60 on Tuesday morning, and what should stand out is that this is year-to-date low. Tesla shares closed out 2018 at $332.80.
Tesla’s consensus analyst target price was $332.01 ahead of this call, and the 52-week trading range is $244.59 to $387.46. The market capitalization is just over $47 billion.
The Average American Has No Idea How Much Money You Can Make Today (Sponsor)
The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.
But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.