Tesla ( (TSLA) ) has fallen by -7.72%. Read on to learn why.
Tesla’s stock has experienced a significant decline over the past week, dropping by 7.72%. This downturn is largely attributed to a downgrade by Erste Group, which shifted its rating from ‘Hold’ to ‘Sell’. The downgrade reflects growing concerns over Tesla’s brand perception, which has been impacted by CEO Elon Musk’s political affiliations and the company’s quality issues. These factors have contributed to a decrease in consumer loyalty and a decline in resale values, further affecting Tesla’s market performance.
In addition to the downgrade, Tesla’s stock movement has been influenced by broader market dynamics and investor sentiment. The company’s recent selloff has been exacerbated by fears surrounding Musk’s political controversies and their potential impact on Tesla’s brand appeal. Despite these challenges, some analysts, like those at Wedbush, remain optimistic about Tesla’s future, citing its potential for innovation and growth in the electric vehicle market.
Looking ahead, Tesla is expected to introduce a lower-cost model, which could help revive consumer demand and restore investor confidence. Wedbush has added Tesla to its ‘Best Ideas List’, maintaining an ‘Outperform’ rating with a price target of $550. The firm believes that Tesla’s upcoming innovations in autonomous technology and its Optimus project could significantly enhance the company’s valuation, potentially exceeding $2 trillion in the future.