Tesla (TSLA) is trading 5.63% lower at $169.98 amid a series of vehicle recalls, and the rising number of Covid-19 cases in China. Tesla stock hit today its lowest level since November 23, 2020.
On Friday the company announced the recall of 321,000 cars over a rear light issue while the previous day Tesla also recalled 30, 000 vehicles due to some airbag issues. The Tesla production figures were announced in early October and also disappointed investors and analysts.
Investors and fans of Tesla accused Elon Musk that his involvement with Twitter (TWTR) harms Tesla’s performance and they want him back to spend more time for the company. Elon Musk has sold a big piece of his Tesla stock holdings to finance his new projects. On November 9, Musk sold 19.5 million shares for $3.95 million.
The recent sell-off in cryptocurrencies amid the FTX collapse has also deteriorated the sentiment for Tesla stock and equities in general. Bitcoin is trading 1.80% lower at 15,932 and remember that Musk bought many bitcoins in 2021 and sold some later.
A Wave of Price Target Cuts for Tesla (TSLA)
After the third quarter (Q3) earnings report, many Wall Street analysts reduced the price target for TSLA. On October 24, Morgan Stanley cut Tesla’s (TSLA) price target from $350 to $330. Wolfe Research on October 20, reiterated TSLA at outperform but cut the price target from $360 to $288. Cowen Reiterated Tesla’s (TSLA) at Market Perform and cut the price target from $244 to $205.
ROTH Capital is the biggest bear for Tesla stock as set the price target from $83.33 to $85.
Tesla’s market capitalization has dropped to $569 billion and the price-to-earnings (P/E) ratio stands at 52.45. the stock has a 52-week trading range between $168.52 and $402.67. Tesla hit 414.50 an all-time high on November 5, 2021. Tesla stock has now reached oversold levels as the RSI index currently is at 28.69.
Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently, Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).