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(Bloomberg) – Shares of Tesla Inc. are expected to fall to their lowest level since December 2016, fearing that the automaker will face a "difficult climb like Kilimanjaro" to meet its profitability targets in the second half of the year. said Wedbush analyst Dan Ives, who feared demand and growth.
In a note published Sunday, Ives described the electric car maker's predicament as a "red code situation" and reduced its price target on the title to $ 230, instead of $ 275. Ives reduced his target of $ 365 last month. He was once one of the most bullish analysts covering Tesla.
In his note, Ives said "worry about the trajectory of Tesla's growth prospects and the underlying demand for Model 3 in the United States in the coming quarters."
Tesla shares fell 3.8% in early trading in New York on Monday, and are expected to hit their lowest level since December 2016 in a context of increased pressure as trade fears continued to weigh on the markets. global fellows. The stock closed at its lowest level in nearly two-and-a-half years after Musk called for a "thorough" review of all spending by the electric car maker and an analyst aware of the potentially serious consequences of an accident fatal involving the autopilot.
Tesla delivered only 63,000 cars in the first quarter, but between 90,000 and 100,000 in the second quarter and between 360,000 and 400,000 for the year. Ives said that achieving the annual goal would be a "Herculean task" and that the most likely scenario would be 340,000 to 355,000.
A spokesman for Tesla in Beijing did not comment immediately, while a representative of the company in the United States did not immediately respond to an exhausted email.
Chief Executive Officer Elon Musk recently warned his employees that he will be looking closely at spending shortly after presenting a future of autonomous robotic taxis to investors, which will allow Tesla to become a $ 500 billion company. dollars.
"In addition, with a red code situation at Tesla, Musk & Co. is expanding its business to insurance, robotaxia and other science fiction projects / initiatives, while the company should instead focus on laser on the strengthening of the main demand for Model 3 and the simplification of its projects.In our opinion, the economic model and the structure of the expenditures are numerous, "wrote Ives.
(Updates with the performance of the shares in the fourth paragraph.)
– With the help of Yan Zhang.
To contact the reporter on this story: Dana Hull in San Francisco at [email protected]
To contact the makers of this story: Craig Trudell at [email protected], Young-Sam Cho at [email protected], Angus Whitley
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