Tesla, Inc. TSLA the stock is falling sharply and could face more downward pressure ahead of quarterly results due on Tuesday.
The company’s challenges are partly due to a lack of visibility into its short- and medium-term prospects. THE Elon MuskThe company has struggled with slowing sales volume and efforts to boost sales have squeezed margins.
The lack of a clear strategic vision further clouds Tesla’s prospects. After previously stating a low-cost model for production in late 2025, rumors now suggest the project will be delayed while the company focuses on promoting its autonomous driving software and robotaxi service. To address cost concerns, Tesla has also begun to scale back operations through layoffs announced earlier this week.
Adding to the downward pressure, analyst downgrades are pouring in. Analyst at Deutsche Bank Securities Emmanuel Rosner downgraded the stock from Buy to Hold, according to the fund manager Gary Blackciting the potential delay of Model 2, and cut the price target from $189 to $123. Barclays analyst Dan Levy on Tuesday it cut its price target from $225 to $180.
In pre-market trading on Thursday, Tesla fell 2.48% to $151.59according to Benzinga Pro data.
See Also: Everything You Need to Know About Tesla Stock
What is the future of stocks: Tesla shares have been down for four sessions now and are on track to open lower on Thursday.
Source: Benzinga
The 14-day relative strength index is at 35, suggesting extremely oversold levels.
However, the stock’s fundamental weaknesses are significant and it currently inspires little confidence among investors.
The next downside support is likely at the $130 level. If that level fails to hold, the stock could drop to the $104 level or even into the $86-100 region.
Tesla’s earnings report on Tuesday is a key event to watch, as past performance suggests a potential post-earnings decline.
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