Tesla stock is at a 'fork in the road' as Elon Musk needs to lead the EV maker through weakness in demand, says Wedbush analyst Dan Ives
"With China representing 40%+ of the global growth story for Tesla this is a heavy concern for the Street which will likely result in more significant price cuts over the coming months to spur demand as a potential pricing war takes place to gain market share in a darker macro backdrop," he wrote.
Tesla shares sank 65% in 2022, their largest yearly decline on record, on a range of concerns voiced by investors and analysts, including Musk's focus on Twitter, which he purchased last year, his multi-billion dollar sales of Tesla stock, and an overall brutal year for large-cap tech stocks. TheThe"Twitter distraction along with this current demand situation is creating a perfect storm for the stock," said Ives.
"With $5+ of earnings power still hittable and the stock in free fall, we do not believe now is the time to bail on the stock and view it is a way oversold on fears of the unknown are around the corner," the analyst wrote.
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