Tesla (NASDAQ:TSLA) stock is in the news Monday after the electric vehicle (EV) company’s price target was cut by HSBC analysts to a new street low.
The HSBC analysts dropped the firm’s price target for TSLA from $130 per share to $118 per share. That’s a potential 46.3% downside from the prior closing price for the stock. It’s also well below the analysts’ consensus price prediction of $204.30 per share.
HSBC also continues to maintain its “reduce” rating for TSLA stock. That’s more bearish than the analysts’ consensus rating of hold based on 36 opinions.
What’s Behind the Bear Stance on TSLA Stock?
HSBC analysts are uncertain about the future of Tesla’s EV business due to decreasing demand in the sector. Other concerns include the age of Tesla models and increasing competition in the market.
On top of that, the HSBC analysts don’t have much hope for Tesla’s future products. That includes its Optimus, artificial intelligence (AI) and Dojo plans. However, they note that Robotaxi plans have potential but question the timing and commercial viability of the project.
TSLA stock is up 5.9% as of Monday afternoon. That comes with some 84 million shares traded, as compared to a daily average of about 96 million shares.
Investors will want to stick around for more of the most recent stock market stories!
We have all of the hottest stock market news that investors need to know about on Monday! A few examples include what’s happening with shares of Mullen Automotive (NASDAQ:MULN), Tilray (NASDAQ:TLRY) and Palantir Technologies (NYSE:PLTR) stock today. All of that info is ready to go at the links below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
