Tesla (TSLA – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Colin Langan from Wells Fargo maintained a Sell rating on the stock and has a $120.00 price target.
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Colin Langan has given his Sell rating due to a combination of factors impacting Tesla’s performance. The April sales data for Tesla shows a significant decline in deliveries across major markets, with an 18% year-over-year and 49% month-over-month decrease. This weak start to the second quarter suggests a risk to meeting the consensus delivery expectations.
Additionally, despite the Model Y refresh in mid-Q1, there has been no observed recovery in deliveries in the US, Europe, and China. The data indicates a downward trend, with European markets down 51% year-over-year in April, and China and US sales also showing significant declines. Furthermore, Tesla’s recent pricing actions, including introducing a cheaper Model Y version and offering discounts, highlight a potential weakening in demand. Concerns are also rising that the anticipated affordable model could cannibalize Model Y sales, affecting future performance.
Langan covers the Consumer Cyclical sector, focusing on stocks such as Tesla, Aptiv, and Lear. According to TipRanks, Langan has an average return of -6.7% and a 46.02% success rate on recommended stocks.
In another report released on May 1, UBS also maintained a Sell rating on the stock with a $190.00 price target.
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