Tesla’s stock fell 5.6% during Thursday’s session, reaching its lowest level in over four months. This sharp decline resulted in the electric vehicle giant losing $50 billion in market capitalization in just one day.
With this drop, Tesla’s stock has returned to levels seen before Donald Trump’s victory in the U.S. presidential elections.
The losses followed a downgrade by brokerage firm Baird, which labeled Tesla as a “new bearish pick” and lowered its price target from $440 to $370.
Analysts have also warned of weaker-than-expected Tesla sales in the first quarter, suggesting that deliveries may fall short of market expectations.
What This Means for Investors
Tesla’s stock decline reflects growing concerns over demand and profitability amid increased competition in the EV market. The downgrade by Baird further pressures the stock, indicating potential downside risks ahead.
For traders and investors, monitoring key technical levels and market sentiment will be crucial in the coming weeks. Short-term volatility could present trading opportunities, while long-term investors may assess whether the dip offers a buying opportunity.
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