Tesla stocks (NASDAQ:TSLA) are bouncing back on despite Barclays analyst Brian Johnson lowering his price target for the company from $210 to $192 on Tuesday, representing a ~30% reduction from recent levels. The notice from the analyst, together with news of Model 3 earnings being briefly stopped by China’s customs as a result of erroneous labels on the vehicles, sent Tesla stock tumbling over 5% on Tuesday’s early morning trading.
Tesla’s drop on Tuesday comes as another blow encounter a steep dip since announcing the $35,000 Model 3 last Thursday. The company’s shares continued its drop on Monday as skeptics of the company pushed the narrative that the requirement for Tesla’s vehicles like the Model 3 is softer than expected and that its change to an online-only sales version was a mistake. Johnson, who has maintained an underweight rating on Tesla stock emphasized this point in his recent note to Barclays’ clients.
“Much of the bull narrative has rested on Tesla being another Apple, selling high-volume EVs at a premium price point and at high gross margins, in part aided by a distinctive branded retail presence–a narrative we view as undermined by the recent price cuts and closing of most shops,” the analyst wrote.
Tesla has dropped over 20% over the previous three months. In contrast, the S&P 500 has gained 3.4%.
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The recent headwinds being confronted by Tesla stock are driven in part by Elon Musk’s statements when he noted that the company would be shifting to an online-only sales model. This will result in Tesla closing most of its retail stores, and yet another round of layoffs.
Skeptics have piled on to push a bearish narrative on the electric vehicle maker’s updates and upcoming vehicle launches. Longtime Tesla skeptic Whitney Tilson, who formerly called his short bet against the company as the “among the biggest mistakes long or short of my investment career” (Tilson ended up closing his finance due partly due to his bet against Tesla) has emerged once more to declare that Tesla is “from bullets. ” In an emailed statement posted to ValueWalk, Tilson predicted that Tesla stock is going down to $100 per share.
“Today I’m making one of my rare calls that are big. We’ll return on last Friday as the beginning of the end for Tesla’s stock. I think Musk has no more rabbits to pull out of his hat and therefore it’s all downhill from here. I predict that by the end of the year, today at $295, the stock, will be under $100. If Tesla had some positive card they would have played on Thursday afternoon so as to soften the blow. I think this means they are from bullets,” he said.
Tesla is expected to hold several significant updates this month. Apart from the launch of the $35,000 Standard Model 3, the business is also expected to debut its first public Supercharger V3.0 this Wednesday. Next week, March 14, Tesla will hold the unveiling event for its highly-anticipated SUV, the Model Y.
As of writing, Tesla stock is trading 2.32% at $278.74 per share.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any places.
The article Tesla stock bounces back despite Barclays’ $192 cost target, Model 3 China worries appeared first on TESLARATI.com.
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