Tesla: Deutsche Bank cuts price target by 35 percent – shares break through key support

Tesla shares don’t seem to be settling down just yet. The stock is also falling sharply this Thursday. With a loss of 2.9 percent to $ 150.95, the stock is once again one of the weakest values ​​in the Nasdaq 100. But worse: the segment is trading below important support in the form of the low of April 2023 at $ 152.37.

However, Deutsche Bank does not see the end of the downward trend yet. Today he withdrew his buy recommendation on the stock and cut his target price from $189 to $123. Compared to the current price, this could mean a lower probability of more than 18 percent. Deutsche Bank research analyst Emmanuel Rosner warned: If the market launch of the Model 2 level 2 car were to be delayed, this would pose a significant risk to the results and free cash flow. Rosner now doesn’t expect the model to be introduced until 2027. However, he lowered his estimate of the number of Model 2 units sold that year from one million to 80,000. For earnings per share earned in 2027, this means a reduction from $4.25 to just $2.40.

Other analysts also voiced criticism, such as James Tierney from asset manager AllianceBernstein. He explained: “The market for the sale of electric cars is more competitive than ever – and as a result of the collapse of the stock market, Tesla has to defend its position, but it is being “overtaken on the left” by the competition.