It has not been a good couple of days for electric vehicle stock Tesla (NASDAQ:TSLA). In fact, it’s been close to catastrophic. But investors are hanging in there, as shares are up significantly in Thursday afternoon’s trading.
The latest hit came from India, where two of the biggest home-grown car companies—Tata Motors and Mahindra & Mahindra—are working diligently to prevent Tesla from getting out from under import taxes. The duo wants import taxes kept at their current level, at least, just to make sure the domestic producers and their investors have some note of protection from the upstart electric vehicle maker. Meanwhile, the Indian government is looking for Tesla to set up manufacturing plants to get significantly lowered import taxes.
Things Only Got Worse for Tesla
Things only got worse for Tesla as the Danes joined in on the Swedish strikes. Indeed, the 3F Transport union joined up with IF Metali, prompting more strikes and more slowdowns in Europe. Several other unions joined in sympathy, including dockworkers, electricians, and even elements of the post office. Tesla promptly fought back with lawsuits targeting the Swedish Transport Agency and the post office, but that only went so far. Then, finally, the car rental company Sixt announced it was dropping its entire fleet of Tesla vehicles, thanks to their surging repair costs and plummeting residual values. Tesla’s price cuts have made new Teslas easier to afford but have also hurt the value of existing Teslas.
What is a Fair Price for Tesla Stock?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 13 Holds, and six Sells assigned in the past three months, as indicated by the graphic below. After a 39.11% rally in its share price over the past year, the average TSLA price target of $245.89 per share implies 2.12% upside potential.
