Tesla target price is lowered to 230 dollars

Tesla, the US electric car leader, has recently actively pursued the diversification business, causing analysts’ attention. Some analysts believe that Tesla should focus on the core business of Model 3, and the diversified layout will adversely affect the overall value of the company, thus lowering the target price of Tesla shares.

CNBC reported that US investment bank Wedbush analyst Daniel Ives lowered Tesla’s target price on the 20th, from $275 to $230, and maintained a neutral rating on the grounds of CEO growth by CEO Elon Musk. The plan, as well as the demand for the Model 3 model in the US market, is “major concern”.

Daniel Ives wrote in the report, “Tesla is facing a “red red” situation, thus spanning insurance, autopilots and other technology projects, but we believe that Tesla should Focus on meeting the core needs of Model 3 and streamlining its business model and spending structure to address downside risks.”

Tesla shares fell 2.69% to 205.36 US dollars on the 20th, the lowest to 195.25 US dollars, the first time since December 2016, which fell below 200 US dollars per share; the year-to-date cumulative decline of 38.29%.

Reuters reported that Tesla’s share price was lower on the 20th, mainly because investors worried that Tesla’s cash position was insufficient, and that the Autopilot autopilot system that Musk regarded as the key to future growth had security problems.

On the 16th, Musk told e-mail to employees that unless the savings are expanded, according to the burning rate of the fourth quarter, the recent $2.7 billion raised by stocks and bonds may be exhausted in 10 months. On the same day, the National Transportation Safety Board announced the Tesla car accident investigation report, referring to the Model 3 death car accident that occurred in March this year, when the Autopilot self-driving system was on. Two big negatives made Tesla’s share price continue to fall.

Nandini Singh

From a very young age I was interested in computers and technology in general, I had my first computer at the age of 10 and at 15 I set up my first tower, since then I have never stopped. Whatever technology, I’m in the front row to know more.

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