Connect with us

Hi, what are you looking for?


Tesla stock has rebounded from a key support: should you buy?

Tesla Inc (NASDAQ: TSLA) is rebounding after testing a key support last week around $170. But a senior Bernstein analyst says this stock is not out of the woods just yet.

Tesla stock could stoop at $150 a share

Toni Sacconaghi is sticking to his underperform rating on the leading U.S. electric vehicles manufacturer. His price objective of $150 translates to a near 20% downside from here.

The analyst agrees that valuation is enticing but remains dovish on Tesla Inc primarily on concerns of a slowdown in demand. His note reads:

We believe that Tesla’s decline is primarily attributable to investor concern about softness in demand, particularly in China, amid collapsing order lead times for cars.

Consequently, Tesla stock is down more than 50% for the year.

The said weakness was evident in its latest reported quarter when Tesla came in shy of Street expectations for revenue.

Why else is Sacconaghi dovish on Tesla

Sacconaghi also sees the $44 billion acquisition of Twitter as another headwind (read more). That’s in line with a recent Morgan Stanley survey in which nearly 75% of the respondents attributed the recent underperformance in Tesla stock to a distracted Elon Musk.  

Added competition and a looming recession could further weigh on demand, the analyst added.

Chinese EV market has grown explosively at 126% YTD through September. But Tesla’s EV growth in China has been 55%. The worry is that Tesla’s current models may be reaching saturation.

According to Sacconaghi, the EV company will either have to lower prices and take a hit on margins or depress its growth trajectory – neither of which paints a rosy picture for the Tesla stock.

The post Tesla stock has rebounded from a key support: should you buy? appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Reprinted from the Future of Freedom Foundation President Biden’s campaign to banish (or maybe outlaw) political paranoia took a wallop last spring. In April,...


    Inflation appears to be on the decline. The Personal Consumption Expenditures Price Index (PCEPI), which is the Federal Reserve’s preferred measure of inflation, grew...

    Editor's Pick

    It’s already a cliché, but technology is rapidly improving. And for many businesses, it’s hard to catch up. However, it’s not just the average...

    Editor's Pick

    At Broadband World Forum 2022, Fibocom launched 5G module FG370 based on MediaTek T830 platform, aiming to empower the deployment of 5G FWA for...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2022 All Rights Reserved.