Tesla (NASDAQ:TSLA) news for Monday concerning a price target cut has TSLA stock taking a beating on Monday.
The price cut for TSLA stock comes from RBC Capital Markets analyst Joseph Spak. This has the analyst decreasing his one-year price target for the stock to $380 per share. That’s a 28.3% drop from his previous price target of $530 per share. It’s also 30.48% lower than the stock’s closing price of $546.62 on Friday.
So why exactly is Spak taking such a bearish stance on TSLA stock? It all comes down to the coronavirus from China. The analyst believes that its effects will harm the demand for Tesla vehicles. It may also affect how many of the vehicles the electric car company is able to put out.
The RBC Capital Markets analyst is now expecting 2020 deliveries of 364,600. The previous estimate was for 524,200 deliveries during the year. Estimates for 2021 are down to 572,100 deliveries from the prior 618,000 estimate, reports TheStreet.com.
It’s worth pointing out that the price cut from Spak doesn’t come with a downgrade for TSLA stock. However, that’s only due to the stock already having the lowest rating of “underperform” from RBC Capital Markets.
While the negative Tesla news isn’t helping its stock, it wasn’t the only car company targeted by Spak on Monday. The analyst also lowered his price targets for Ford (NYSE:F) and General Motors (NYSE:GM). Just like with TSLA, the analyst continued to maintain his current ratings for these stocks.
TSLA stock was down 15.49%, F was down 10.9% and GM was 13.01% as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
