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Tesla’s Remarkable Surge Triggers Downgrades and Caution on Wall Street

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June 26 (XHUBH) – The shares of Tesla Inc. (TSLA.O) have risen so quickly that the company’s market value is now close to a trillion dollars. This has led some analysts to question and lower the stock’s pricing.
On Monday, Goldman Sachs gave Tesla a “hold” rating instead of a “buy” rating. Last week, Morgan Stanley and Barclays did the same thing. On the other hand, the brokerages raised their price goals to reflect the growth of Tesla shares, which have risen 71% since late April and more than doubled this year.
On Monday morning, the company’s stock that makes E.V.s was down 1.2%. The market value of Tesla is $813.29 billion, much higher than the market value of Toyota (7203.T), the next largest car company in the world after Tesla.
The brokerages say that part of the reason for the rise, which has cost short sellers $12.68 billion this year, is that the company is doing well because of the buzz around A.I.
In the past two months, Tesla shares have also gotten great news. For example, rival automakers Ford (F.N.) and General Motors (GM.N) have made deals to use Tesla’s charging network, which could make its charges the industry standard.
China’s news last week of a $72.3 billion plan of tax breaks for electric vehicles (E.V.s) and other green cars also helped the stock.
“The market is now giving the stock more credit for its longer-term opportunities, but we are also aware of the difficult pricing environment for new vehicles, which we think will continue to weigh on Tesla’s automotive non-GAAP gross margin this year,” said Goldman analyst Mark Delaney.
Morgan Stanley and Barclays both said that Tesla’s profit could still be changed incorrectly because it is competing with other companies in China and may have to lower prices.
Jefferies and Truist Securities both lowered Tesla in April after the company’s first-quarter data showed that it had lower profits.
But the brokerages said again that they expected strong growth in the future and that Tesla would stay the leader in E.V.s worldwide.



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