Tesla Stock Faces Downgrades from Multiple Analysts Over Valuation Concerns

Published 6 hours agoTSLA

Tesla Stock Faces Downgrades from Multiple Analysts Over Valuation Concerns

Tesla has seen a wave of downgrades from prominent financial analysts over concerns surrounding its stock valuation. Berenberg Bank shifted its rating from 'Buy' to 'Hold', citing a potential overvaluation amid fears of an electric vehicle price war. Goldman Sachs also downgraded Tesla to 'Neutral', highlighting the significant 105% surge in year-to-date valuation as a reason for caution.

These sentiments are echoed by UBS, which has moved its rating to 'Sell', pointing to issues such as the deteriorating core automotive business and challenges in Tesla's AI ventures. Similarly, Bernstein downgraded Tesla to 'Underperform', questioning the sustainability of its current high valuation and growth prospects. Guggenheim and BofA Securities have also expressed reservations, with concerns over margins, demand indicators, and execution risks, respectively.

Tesla Inc's stock is currently priced at 281.24 USD, down slightly by 3.71 USD or 0.01% from the previous close. While the stock opened at 288.99 USD, it experienced an intraday range between 272.49 and 294.77 USD, with a significant trading volume of over 117 million shares. As reported by Markets Insider, a further dampening sentiment saw another analyst cut Tesla's price target by about 20%, citing discomfort with near-term earnings outlook.

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