Tuesday , 11 February 2025
Home Forex Tesla shares down 2.5% in the premarket after Wells Fargo downgrades to underweight
Forex

Tesla shares down 2.5% in the premarket after Wells Fargo downgrades to underweight

US equity future are flat today but Tesla will be a drag. They’re trading lower by 2.5% in the pre-market and threatening yesterday’s low after a downgrade from Wells Fargo.

They expect sales “to disappoint as [price] cuts are having a diminishing impact on demand. .. In the wake of price cuts are lower lease residuals, disgruntled customers & the possible loss of the luxury brand premium.”

They lowered their target to $125 from $200 and cut shares to underweight. In a downside scenario, they see shares as low as $44.

“We see downside risk to volume as price cuts are having a diminishing impact. We see headwinds from disappointing deliveries & more price cuts, which likely drive negative EPS revisions. Our 2024 & 2025 EPS estimates are 32% & 52% below consensus, respectively. Model 2 economics are likely tough as a mass market compact vehicle.”

They see 1.8 million deliveries in 2024, which is nearly flat with 2023 and little sales growth in 2025. They see an earnings decline this year to $2 from an adjusted $3.12 in 2023 and called it “a growth company with no growth”.

Earlier this week, Evercore questioned whether Tesla could ramp up production of the Model 2 for 2026, where the consensus is seeing 1 million in sales. The report said Tesla is increasingly a 2027 story after touring the Texas factory.

On the TSLA chart, a series of lower lows is increasingly seen and with shares trading at $173 in the pre-market, yesterday’s low is at risk.

Today Elon Musk travelled to Berlin to visit the factor there a week after a suspected arson attack. The plant was restarted yesterday and today

This article was written by Adam Button at www.forexlive.com.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

US January NFIB small business optimism index 102.8 vs 104.6 expected

Prior was 105.1The NFIB Small Business Optimism Index fell by 2.3 points...

USDCAD Technical Analysis – We are trading in a tight range

Fundamental OverviewThe USD has been stronger since last Friday as Trump floated...

FXS Fed Sentiment Index retreats but remains in hawkish territory ahead of Powell testimony

Federal Reserve (Fed) Chairman Jerome Powell will testify on the semiannual Monetary...

Oil: Energy complex is being pushed higher – ING

WTI is trading above $72/bbl while ICE Brent edged above $76/bbl this...