Tesla Inc shares have taken a hit, sliding about 9% over the past week. This downturn is attributed to a combination of factors including bearish analyst commentary, weak delivery trends, growing inventory concerns, and fresh technical damage. Despite the company scoring a modest regulatory win, these challenges have overshadowed the positive news.
Key Concerns
- Consolidation of Shares: Investors are watching closely as Tesla shares consolidate, wondering where the stock is headed.
- Analyst Cuts: The pressure on Tesla shares intensified after several analysts cut their targets following the company’s disappointing first-quarter delivery report. This report showed a significant gap between the number of vehicles produced and those delivered, leaving over 50,000 vehicles unsold.
Analyst Cuts Add To Pressure On Tesla Shares
The downward trend started to gain momentum after an analyst warned investors to approach Tesla with caution, setting a price target that implies a steep downside from recent levels. Other analysts followed suit, cutting their targets due to the company’s weak delivery performance. The production-sales gap has raised concerns about softening demand and the potential for weaker near-term earnings.
Death Cross Keeps Bearish Momentum In Focus
The situation has been further complicated by Tesla triggering a death cross, a bearish chart signal that reinforces negative momentum. This technical indicator has investors cautious as they look ahead to the company’s upcoming earnings report.
Tesla Earnings Due April 22 As Wall Street Looks For Growth
- Earnings Report Countdown: Tesla is scheduled to report its earnings on April 22.
- Expected Figures:
- EPS Estimate: 33 cents, an increase from 27 cents year-over-year.
- Revenue Estimate: $22.65 Billion, up from $19.34 Billion year-over-year.
- Valuation: A P/E of 317.8x, indicating a premium valuation relative to its peers.
Analysts Still Rate Tesla A Buy Despite Recent Target Cuts
Despite the recent target cuts, Tesla maintains a Buy rating with an average price target of $417.82. Recent analyst actions include:
- Canaccord Genuity: Maintaining a Buy rating with a target of $420.00.
- Baird: Outperform rating with a lowered target to $538.00.
- Canaccord Genuity: Buy rating with a lowered target to $420.00.
TSLA Shares Trade Flat
As of the last update, Tesla shares were trading flat, down 0.90% at $340.18. The market awaits the earnings report, which will likely provide significant insight into the company’s future performance and direction.