Nel ASA is collapsing, Plug Power is also experiencing heavy losses, Tesla is in the eyes of analysts and BYD cannot break out.

Stock traders are becoming more cautious

Yesterday the markets were once again dominated by interest rates, or rather intense speculation about what might happen in this regard. Until recently, stock market investors assumed that key interest rates would make their first move south by this summer. Interestingly, higher inflation figures from the USA have now dimmed these expectations again.

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It wasn’t just stocks on the US stock market that were affected by this. The effects were also seen in local areas. One of the biggest losers that day was Nel ASA (NO0010081235) with a price loss of around 15 percent. The initial recovery has largely disappeared into thin air and the key line of 0.50 euros has been crossed downwards at a rapid pace. 0.46 euros were still on the ticket at the end of the trade.

Additional selling pressure emerged for Nel ASA from key analyst comments from Pareto Securities. There was talk of a tighter starting position and increased pressure on cash. This can have a negative impact on back-end plans, and incoming orders continue to leave a lot of waste. The price target was cut by 16 percent and instead of a neutral stance there is a clear sell recommendation.

Put the power back into reverse gear

I already got it last week too Power Plug (US72919P2020) he missed a sell recommendation from Citigroup, where the target price is only 3.25 US dollars. With the expectation that interest rates may remain high for a long time, the bulls seem to have raised the white flag. Shares lost 5.5 percent of their value on Wednesday to return to $3.07.

Once again, the $3 mark comes in front of the bears, which is currently considered the most important support. It is unlikely that the line can be successfully defended again. But even if this work were successful, there is still no doubt that there will be no high speed.

Tesla: No recovery!

And Tesla (US88160R1014) analysts at Jefferies recently weighed in, but the company wasn’t given a very positive outlook. At least it remains a hold recommendation, but stock market experts significantly lowered the price target ahead of the numbers. Only $165 instead of the original $185 was promised over 12 months. I look forward to continued questions about company leadership and product priorities. Analysts also assume negative cash flow.

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However, the interest rate situation is not as important to Tesla as it is to many other companies. However, the situation is not good as a result of recent developments. Yesterday the stock fell by 2.9 percent and ended at a tired 171.76 euros. While there have been days with green signals recently, there is no sign of a sustained change in trend at Tesla either.

Should BYD slow down?

In WORLD (CNE100000296) Many investors are also likely to lack fresh inspiration at the moment. Again and again, the normal price profit is made. This was also the case on Wednesday, when the price fell by 1.1 percent to $26.51. The Chinese carmaker is still on the growth path. But the speed seems to slow down more and more. Now there were other negative indicators from the Chinese domestic market.

Electric vehicle sales there only rose 14.6 percent in the first quarter compared to last year. This is the lowest value since Q2 2023 and was created under the impression of a number of cuts, which do not have a beneficial impact on margins. Exports increased rapidly by nearly 40 percent, of which BYD was certainly not involved. Since the EU in particular is increasing pressure against Chinese car manufacturers, the expectations of shareholders in this regard are limited,

Uncertain expectations

It was probably only a matter of time before the euphoria in the stock market hit a slight damper. It is still impossible to predict with absolute certainty whether this will lead to fundamental changes or not. This will now also largely depend on what the Fed releases in the near future and whether the ECB is interested in them in any way. What is clear, however, is that interest rate conditions in the stock market will again set the tone. At the moment, this creates uncertainty and the possibility of increased volatility.

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11.04.2024 – Andreas Göttling-Daxenbichler

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