Tesla: share price continues to fall, Deutsche Bank downgrades
At 10.50 am, the electric vehicle manufacturer's shares were down 2.5%, while the S&P was up 0.5%.
In a note published in the morning, the research firm indicates that it has decided to downgrade its recommendation on the stock from 'buy' to 'hold', with a price target reduced from $189 to $123.
'Our long-term buy recommendation was based on the prospect of the launch of the new-generation vehicle at less than $25,000, initially scheduled for the end of next year', recalls the analyst.
According to Deutsche Bank, this product would have enabled the company to reaccelerate its sales volumes, margins and cash flow, and even to definitively assert its dominance of the electric vehicle market in Western countries.
'The postponement of the Model 2's release will put significant pressure on earnings and cash flow generation from 2026 onwards, according to our estimates', worries the professional.
It will also make the company's future highly dependent on the success of its fully autonomous driving (FSD) technology, which represents a technological, regulatory and operational gamble', it warns.
The stock is now down more than 39% since the start of the year.
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