A securities firm has warned that Tesla’s stock could drop by around 10% in the near future. On Tuesday, Philippe Houchois, an analyst at the well-known Wall Street firm Jefferies, released a report maintaining Tesla’s investment rating while setting a price target of $195.
Given Tesla’s stock price of $217 that day, this projection indicates a potential decline of around 10%.
Houchois pointed to stagnation in electric vehicle sales growth as the basis for this target price.
He warned that Tesla shows little sign of progress in terms of technological innovation or advancements in its business model, adding that future funding could also be challenging.
Indeed, Tesla’s stock has been on a downward trajectory for four consecutive days leading up to the announcement of its Q3 and Q4 earnings reports. This decline appears to reflect concerns about Tesla’s short-term profit outlook. According to financial news outlet MarketWatch, Tesla’s stock price dropped immediately after six of its last eight quarterly earnings announcements, with an average price fluctuation of ±10%.
Tesla is set to release its quarterly results after the market closes on Wednesday.
