Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Why Is Tesla Stock Falling Over 1% Premarket Today?

Published 25/03/2024, 11:56
Updated 25/03/2024, 13:10
© Reuters.  Why Is Tesla Stock Falling Over 1% Premarket Today?

Benzinga - by Shanthi Rexaline, Benzinga Editor.

Shares of electric vehicle maker Tesla, Inc. (NASDAQ:TSLA) experienced a sharp decline in premarket trading on Monday, further extending the downturn observed since last Friday.

The premarket pullback can be attributed to several negative catalysts. Mizuho Securities analyst Vijay Rakesh downgraded Tesla, along with Rivian Automotive, Inc. (NASDAQ:RIVN) and Nio, Inc. (NYSE:NIO), all from Buy to Neutral, according to Benzinga Pro data.

The analyst based his revised outlook on near-term demand weakness and tightening liquidity.

The timing of this negative rating action couldn’t be worse for Tesla, as the company prepares to announce its first-quarter deliveries.

Gary Black of Future Fund raised concerns on Sunday about Tesla’s first-quarter volume potentially falling well below the consensus estimate, currently set at 468,000 units. Additionally, he cautioned that sales might not see sufficient growth in the second quarter to achieve year-over-year growth. In light of slowing sales growth, the fund manager suggested that the company’s valuation appears unsustainable.

Tesla’s stock may also face pressure from broader market negativity, with stock futures currently trading lower.

In premarket trading, Tesla declined by 1.29% to $168.62, according to Benzinga Pro data, while Rivian experienced a steeper drop of 1.76%.

Image via Shutterstock

Latest Ratings for TSLA

Feb 2022Daiwa CapitalUpgradesNeutralOutperform
Feb 2022Piper SandlerMaintainsOverweight
Jan 2022Credit SuisseUpgradesNeutralOutperform

View the Latest Analyst Ratings

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.