Tesla Stock Downgrade by Wells Fargo Analyst
Tesla stock hits 10-month low as Wells Fargo analyst downgrades it due to flat business in EU and China, and declining U.S. business. Despite recent underperformance, Wedbush analyst believes negative sentiment is exaggerated and predicts sales and profitability improvement in coming quarters.
Key Points
- Tesla stock hits 10-month low following Wells Fargo analyst's downgrade
- Wedbush analyst defends Tesla, citing exaggerated negative sentiment
- Only 18 out of 50 analysts surveyed are bullish on Tesla
Pros
- Wedbush analyst believes negative investor sentiment is exaggerated
- Predicts sales and profitability improvement in the coming quarters
- Sees potential for Tesla's valuation to exceed $1 trillion in the future
Cons
- Tesla's business has been flat in the European Union and China
- Declining U.S. business performance
- Potential for more pressure on volumes and competition in the market