Tesla (NASDAQ: TSLA) continued to go downhill on Tuesday, sliding by 8.1% and hitting a new 52-week low of $137.80. This has pushed Tesla’s market cap down to $431.8 billion, below even oil giant Exxon Mobil’s (XOM) market cap of $439.35 billion.
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TSLA stock has now plunged more than 65% this year and in the past month alone, the stock has declined by around 17%.
Moreover, on Tuesday, Evercore analyst Chris McNally, while keeping a Hold rating on the stock, slashed the price target to $200 from $300 on the stock. McNally’s price target implies an upside potential of 45.1% at current levels.
Besides McNally, two other Wall Street analysts also lowered the price targets on TSLA stock on Tuesday. Analysts remain concerned about the Twitter overhang on Tesla as there have been concerns that Musk is finding it more difficult to focus on Tesla as his attention has been diverted by the social media platform.
However, McNally cited a weaker demand for the EV major’s cars as one of the reasons for the lowered price target.
The analyst commented, “While we continue to view TSLA as having a leading EV gross margin advantage from global scale, vertical integration, & US IRA benefits, it is impossible to ignore that investors are already well aware of these benefits but now must ALSO battle test demand assumptions for ‘23-25.”
McNally remains worried about “Tesla thesis drift from 1) unlimited demand/Rev [demand-to-revenue] to 2) margin “story”, that has occurred over the last 6-12 months.”
The analyst also pointed out that TSLA shares are now trading below the support zone in the range of $150 to $163, which McNally perceived as a “critical battleline to defend.”
McNally concluded, “Short term it’s too late to sell, but also too early to buy (net long).”
Meanwhile, other analysts besides McNally are cautiously optimistic about TSLA stock with a Moderate Buy consensus rating based on 19 Buys, 10 Holds, and two Sells.