By Senad Karaahmetovic
Tesla (NASDAQ:TSLA) stock price closed at $149.87 yesterday, its lowest daily close since November 2020. Despite the move higher earlier in the day on Elon Musk's poll about quitting as Twitter CEO, Tesla stock still managed to close 0.24% in the red.
At least, two sell-side analysts slashed their price targets on the electric vehicle (EV) manufacturer today. Evercore ISI analysts cut the price target by $100 to $200 per share on Tesla stock, citing weaker demand.
"While we continue to view TSLA as having a leading EV gross margin advantage from global scale, vertical integration, & US IRA benefits, it is impossible to ignore that investors are already well aware of these benefits but now must ALSO battle test demand assumptions for '23-25," they wrote to clients in a note.
The analysts are growing increasingly worried about "Tesla thesis drift from 1) unlimited demand/Rev to 2) margin "story", that has occurred over the last 6-12 months."
They also note that Tesla stock is now trading below the $150-163 support zone, which was seen as a "critical battleline to defend."
"Short term it's too late to sell, but also too early to buy (net long)," the analysts added.
Daiwa analysts also cut the price target on Tesla stock as he went to $177 from the prior $240 per share, citing Twitter discretion and a weak macro environment. The lowered price target reflects lower estimates with Daiwa now expecting 5% fewer units to be delivered in 2023.
"We continue to view Tesla stock favorably on a fundamental basis, given the company's increasing competitive advantage from the Inflation Reduction Act and potential innovations such as 4680 battery with dry electrode process," the analysts wrote in a note.