To be sure, other automotive stocks, such as Ford Motor Co., have fallen a similar amount as Tesla year to date. But Tesla’s slide comes as analysts forecast strong vehicle sales growth and profits this year, while legacy automakers have struggled with falling production on parts shortages. Tesla’s record stock close was on Nov. 4 last year at $1,229.91.
Jefferies downgraded Tesla’s price target to $1,050 from $1,250. It reduced its full-year production estimate by 85,000 vehicles to 1.4 million — but noted that’s still a 52 percent annual growth for the automaker.
Despite concerns over how Tesla is being run in the short term, Jefferies sees the EV maker outpacing legacy automakers in operating performance and profits.
Tesla’s sales, which have been rising steadily for two years despite the pandemic and semiconductor shortage, are expected to take a hit in the second quarter as a result of the China