The total market value of Tesla shares that broke into 210 dollars fell by 39 billion dollars overnight

Tesla's stock price fell 5.46% to below $210 on Thursday, market value evaporated by $39 billion overnight, and volatile stocks saw the 11th biggest one-day rate decline this year. HSBC previously attached a “sell” rating and a target share price of 146 dollars to the same stock.

This means that a new member has joined Wall Street's Tesla bearish faction. HSBC analysts questioned the timing of the electric car manufacturer's project and said its “charismatic” CEO Elon Musk was both an asset and a risk.

HSBC analysts led by Michael Tyndall gave Tesla an evaluation equivalent to a “sale” on Thursday, and set the target stock price to 146 dollars, which means a drop of 30% or more from Thursday's closing price of 209.98 dollars.

HSBC analysts stated that this caution “is due to uncertainty surrounding the timing and commercialization of Tesla's various ideas,” and “we see that there is considerable possibility in Tesla's outlook, but I think that time frame may be longer than the market and valuations reflect.”

However, it is said that Tesla is “not just an automobile company.” For now, electric cars may be the main driver of Tesla's earnings and profits, but according to the company itself, “Tesla's future lies in robotics, autonomous vehicles, energy storage, and supercomputers.”

However, according to HSBC analysts, many of these ideas are still in the concept stage. It is clear that “a significant portion of current stock prices is made up of hope.”

As for Mr. Musk, it is said that the presence of a “charismatic and persuasive” CEO supports the desired factor in Tesla's evaluation. His global popularity has brought customer awareness to Tesla, which far exceeds the money spent on marketing advertising, which they call “visible” profit.

However, an HSBC analyst stated that Musk's “prominent presence poses considerable 'one-man' risks.”

These analysts assume that Tesla's FSD, Dojo supercomputer, and Optimus Robotics “will all succeed by the end of this decade,” but “however, considering the regulatory and technical challenges these businesses face, they think the anticipated cost of capital should be far higher than Tesla's average.”

HSBC's selling evaluation was made at a time when bullish Tesla analysts still surpassed bearish analysts. Of the 46 analysts surveyed by FactSet, 20 have “bought” Tesla's stock price or rated it in the same way, and 19 have “held” or given an equivalent evaluation. There are only 7 people who have “sold” or given an equivalent evaluation.