EV major Tesla’s (NASDAQ:TSLA) CEO Elon Musk arrived at the company’s Gigafactory in Gruenheide, Germany after operations resumed at the location due to an electricity outage. Last week, production at Tesla’s German Gigafactory was brought to a standstill following a fire incident involving a high-voltage electricity pylon in a field adjacent to the site.
The production halt at Tesla led to a suspension of around 1,000 cars per day and poses a potential cost of approximately €100 million for the company.
Analyst Outlook on TSLA
Meanwhile, Wells Fargo analyst Colin Langan downgraded TSLA to a Sell from a Hold and lowered the price target to $125 from $200. The analyst’s price target implies a downside potential of 29.6% at current levels. Langan cited TSLA’s higher valuation compared to the other Magnificent 7 stocks and believes that the company’s price cuts may hit its earnings.
The analyst foresees headwinds from lower-than-expected vehicle deliveries and more price cuts. As a result, Langan’s FY24 and FY25 EPS estimates are “32% & 52% below consensus, respectively.”
What is the Stock Price Prediction for Tesla?
Analysts remain sidelined about TSLA stock with a Hold consensus rating based on 10 Buys, 19 Holds, and six Sells. Year-to-date, TSLA has plunged by more than 25%, and the average TSLA price target of $209.72 implies an upside potential of 18.1% at current levels.
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