Tesla shares fell more than 4% to approximately $227 amid BYD’s charger news and analyst forecasting declines. RBC Capital reduced its price target for Tesla due to concerns about self-driving and robotaxi initiatives, while Oppenheimer decreased delivery projections. With losses mounting, Tesla is set to launch a cheaper Model Y in China next year.
On Tuesday, Tesla shares continued their decline, dropping more than 4% to around $227, marking a year-to-date decrease of over 40%. The downturn was spurred by reports that Chinese electric vehicle maker BYD introduced a charger capable of fully charging a vehicle in just five minutes. Analysts on Wall Street expressed skepticism regarding Tesla’s stock, contributing to investor hesitance.
RBC Capital lowered its price target for Tesla from $440 to $320 due to an increasingly grim outlook for its self-driving technology and the anticipated robotaxi rollout in China and Europe. The analyst consensus target for Tesla currently stands at approximately $359. Additionally, recent developments indicate that Tesla’s Full Self-Driving system is still awaiting approval in China.
Oppenheimer subsequently projected that Tesla could deliver 30,000 fewer vehicles than previously expected, leading to a revised fiscal 2025 revenue forecast of $97.9 billion, a decrease of about 2%. Meanwhile, BYD reported that its new Super e-Platform would allow for around 250 miles of range in a comparable timeframe to that of gas-powered vehicles, with plans to launch next month.
In a move to remain competitive in the Chinese market, Tesla is reportedly set to introduce a more affordable version of its Model Y SUV next year. CEO Elon Musk has faced scrutiny as the stock has nearly halved in value since the Trump administration began, with Tesla now tracking towards a ninth consecutive week of losses.
In summary, Tesla shares have experienced a significant downturn prompted by negative forecasts from analysts and competitive pressures from firms like BYD. The anticipated rollout of enhanced self-driving technology and a budget-friendly Model Y SUV may provide some mitigating factors, but the stock’s trajectory remains uncertain. Investors continue to monitor these developments closely in light of the challenging market conditions.
Original Source: www.investopedia.com
