Investment firms downgrade their Tesla stock price targets

Tesla, the electric car maker, has been struggling in the stock market lately. Four leading investment firms, including Goldman Sachs, have revised their expectations for the company’s shares, downgrading their ratings from “buy” to “neutral”. Analysts cite two factors for the decision: the strong rise in stock prices last year and a decline in prices for new electric cars.

Tesla’s shares rose 35% in the past year, while the S&P 500 index rose 23%. However, after several banks, including Barclays and Morgan Stanley, downgraded their ratings, Tesla’s shares fell 6.06% on NASDAQ to $241.05 on Monday.

Tesla’s shares have long attracted investors’ attention and sparked debates in the investment community. In recent times, more investment firms have downgraded their ratings on the company’s shares, including Goldman Sachs, Morgan Stanley, Barclays, and DZ Bank. Goldman Sachs analysts explain their position by citing two factors: the strong rise in stock prices and a decline in prices for new electric cars.

Is it worth buying Tesla’s shares now?

Despite maintaining a “buy” rating since December 2020, and a 35% rise in the company’s shares, Tesla’s shares experienced their largest drop ever in 2022, losing 65.03%. However, this year the shares have shown a confident rise, adding 95.69% in six months, and just in June, the electric car maker’s stock prices soared 18.2%. As of June 26, Tesla’s market capitalization was around $764 billion. For comparison, this is more than the market capitalization of all other carmakers combined.

Investors and analysts have different opinions on Tesla’s shares: on The Street portal, there are 20 “buy” ratings, 20 “hold” ratings, and nine “sell” ratings. However, given the recent changes in the company’s ratings, investors should be more cautious in their approach to avoid losing their savings.

Target price forecasts for Tesla shares. Data collected on CNBC Pro (Photo: CNBC)

Overall, the downgrade of Tesla’s stock ratings does not mean that the company may face serious difficulties in the near future. However, investors should consider analysts’ recommendations when making decisions about buying or selling shares.

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