Benzinga - by Shanthi Rexaline, Benzinga Editor.
Shares of electric-vehicle giant Tesla, Inc. (NASDAQ:TSLA) fell in premarket trading on Wednesday, extending losses after declining in each of the past three sessions.
The stock fell nearly 5% to $166.63 on Tuesday after it reported its first year-over-year sales decline since the second quarter of 2020. While the median company-compiled consensus called for deliveries of 431,000 units for the quarter, the Elon Musk-led company could manage to report sales of just 386,810 EVs.
The company blamed the shortfall on slow production ramp-up as the Fremont factory transitioned to Model 3 refresh production and supply challenges in Europe. Musk, meanwhile, said in a post that it was a challenging quarter for everyone in the industry.
Deepwater Asset Management‘s Gene Munster commented on the numbers, saying Tesla caught analysts off guard with the dismal numbers and he doesn’t see a reprieve in the near term. He believes the stock could fall further in the short-term, but sees comparisons becoming easier in the second quarter of 2025, with the stock potentially reflecting this by mid or late 2024.
Among the sell-side analysts:
- Deutsche Bank maintained its Buy rating and $200 price target.
- CANACCORD Genuity maintained a Buy rating and a $234 price target.
- Baird maintained an Outperform rating and reduced the price target from $300 to $280.
- Oppenheimer reiterated its Perform rating.
In premarket trading on Wednesday, Tesla fell 1.04% to $164.90, according to Benzinga Pro data.
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