Tesla’s stock (NASDAQ:TSLA) value is on the decline following its third downgrade from Wall Street in consecutive days. Analysts are becoming increasingly pessimistic about the EV giant. In a rare move, DZ Bank’s Matthias Volkert skipped the ‘Hold’ rating and went directly from a ‘Buy’ to a ‘Sell’ with a share price target of $210. While the specific reasons behind Volkert’s dramatic downgrade remain unclear, it seems the rapid rise of Tesla’s stock, which is now 26% above Volkert’s price target, could be a key factor.
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This valuation drop follows downgrades from other major players. Adam Jonas from Morgan Stanley described the recent Tesla stock gains as reaching a “fair valuation,” downgrading his rating from ‘Buy’ to ‘Hold.’ Similarly, Barclays’ Dan Levy cited unstable near-term fundamentals in the auto industry as the reason for his rating change.
Overall, analysts have a Moderate Buy consensus rating on TSLA stock based on 14 Buys, 12 Holds, and five Sells assigned in the past three months, as indicated by the graphic above. Nevertheless, the average price target of $216.46 per share implies 15.96% downside potential.