Shares of Tesla (NASDAQ: TSLA) are heading for the fifth successive losing streak on Tuesday, putting them on track for the third straight weekly and monthly declines correspondingly. The stock slumped 2.95 percent on Tuesday, largely on the back of negative outlook from analysts.
Ben Kallo, analyst at Baird, cut his price target from $400 to $340 although he maintained an outperform rating on the stock. He also said that the stock would be downgraded if it continues to slide further since price declines can affect the company’s fundamentals like funding growth, retaining talent, and catering to consumer demand.
Analysts at Morgan Stanley too cut their bearish forecast on the stock from $97 to $10 as they expect Tesla’s sales to half in China due to the ongoing tussle between Beijing and Washington, and the massive debt pile accumulated by the company. The brokerage has, however, maintained its primary price target of $230 and a bullish projection of $391.
On charts, Tesla’s bearish trend could be capped anywhere between $180-182, although, for long-term investors, the stock looks good even at current levels of $198.