This follows the stock's 11.41% drop to close at $109.10 on Tuesday, its lowest level since August 2020. This marks the largest single-day drop in Tesla stock since late April 2021.
Wedbush analysts attribute the selloff to increasing macro and company-specific EV competitive headwinds that Tesla is facing in the US and China through 2023. They also note growing investor concerns about the potential for softer demand in 2023 due to dark macro clouds and increasing domestic EV competition.
However, Baird analysts see the selloff as a buying opportunity and have named Tesla a "Best Idea for 2023." They are optimistic that sales of shares by CEO Elon Musk will end in 2023 and believe Tesla is well-positioned to benefit from the EV market in the coming years.
While they have lowered their price target on Tesla stock to $252 per share (from $316), this still implies an upside potential of more than 130% relative to Tuesday's closing price.
Tesla's Declining Stock Price Concerns Investors
Tesla's (NASDAQ: TSLA) stock price has been on a downward trend, with shares falling nearly 4% in pre-market Wednesday and dropping 11.41% to close at $109.10 on Tuesday. This marks the lowest level for the company's stock since August 2020 and the largest single-day drop since April 2021.
Analysts Split on Tesla's Future Performance
Tesla (NASDAQ: TSLA) has recently seen its stock price decline, with shares falling nearly 4% on pre-market Wednesday and dropping 11.41% to close at $109.10 on Tuesday. This marks the lowest level for the company's stock since August 2020 and the largest single-day drop since April 2021.