Savvy Trades and Investments

[researcher59]

TSLA (108) longtime Tesla bull, Dan Ives of Wedbush, turns cautious -

briefing -

Tesla: Further Thoughts on Tesla Weakness; This is a Fork in the Road For Musk/Tesla -- Wedbush (108.10)

Analyst Dan Ives commented, "The major sell-off in Tesla stock yesterday post softer 4Q deliveries was clearly an ominous start for the company to kick off 2023 after a horrific 2022 for the stock with a black cloud now forming over the story. The major worry now overhead for Tesla is that the demand story especially out of China is showing heavy cracks in the armor at a time that EV competition is steadily increasing domestically with NIO, BYD, Xpeng, and others fighting for a smaller pie with the Chinese consumer weakening. 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. As such, this leaves investors with more questions than answers on the Tesla story with global demand into an uncertain 2023 a stark contrast to the Cinderella story Musk & Co. have seen in China over the past few years which has catalyzed the Model 3/Y demand story."