Have major banks downgraded Tesla across the board? Headwinds that intensify due to sluggish performance growth, “single man” risk indications, etc.

moomooニュース米国株 wrote a column · Nov 14, 2023 09:19

HSBC analyst Michael Tyndall said, $Tesla (TSLA.US)$Make new investment decisions“sell”is granted, and there is room to lower the target stock price by about 30% compared to the 10-day closing price146 dollarsI set it to.

Have major banks downgraded Tesla across the board? Headwinds that intensify due to sluggish performance growth, “single man” risk indications, etc.

Mr. Tyndall said that Mr. Musk himself was a “risk” for Tesla's future stock price performance, but that did not indicate his prank. He pointed out that Mr. Musk's outstanding presence brings “single man” risks, and mentioned the long-term issues faced by companies whose success is closely linked to one leader.

Stock price performance
$Tesla (TSLA.US)$The stock price has continued to move weakly until now, and compared to the end of September, it is 13.2% lower as of 11/10. High tech ratio $Nasdaq Composite Index (.IXIC.US)$rose 4.1% over the same period. The index recorded 9 consecutive gains last week. High-tech stocks generally returned to a steady pace, but Tesla did not make such aggressive purchases.

Financial results and information for 23Q3
There is a sense of caution against sluggish performance growth in the background of Tesla sales. It was announced in OctoberFinancial results for the fiscal year ending 2023/7/9Sales growth slowed compared to the same period last year, resulting in a drastic decline in profit. The rise in US interest rates had an adverse effect on EV sales, and profitability deteriorated. In a situation where it is necessary to stimulate demand through price cuts, there is widespread concern that interest margins will continue to devalue in the future. There is also great concern about the intensification of competition due to the rise of the Chinese team. The financial results forced the bulls, who expect Tesla's stock price to continue to rise, to reconsider the scenario.

Slowing consumption is a burden on EV demand
Also, the US consumer attitude index for November announced on the 10th (University of Michigan survey) was 60.4, which fell below market expectations (63.7), and fell to a low level since May.

There was an indication in the market that “the effects of interest rate hikes by the US Federal Reserve (Fed) were delayed, and it became clear that they had finally begun to hit consumption” (Wells Fargo's Tim Quinlan).

If consumption continues to slow, it is inevitable that demand for EVs will become a burden.

This article uses automatic translation for some of its parts
Sources: Bloomberg, Moomoo, Tesla IR, Nihon Keizai Shimbun, Forbes, newspapers
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