Tesla is on the ropes as the blows keep coming
Once hailed as the ultimate 21st-century disrupter, many analysts now see Tesla as something of a ‘debacle’ and facing a ‘code red situation’
New York — For Elon Musk and Tesla, the blows from Wall Street came one after another this week — a relentless barrage that left the stock so beat up that some now wonder if it can ever regain its status as the ultimate 21st-century disrupter. Morgan Stanley threw the biggest blow, declaring that in a worst-case scenario, Tesla’s shares could sink to a shocking $10. A Wedbush analyst said the car maker is facing a “code red situation” and cast doubt on whether Tesla can sell enough of its electric cars to make a profit. And Citigroup and Robert W Baird analysts, among others, slashed their target prices, citing concerns about cash flow and consumer demand. By the end of trading onn Thursday, the stock had fallen 7.4% this week, leaving it down a staggering 41% on the year. Some $22.3bn in shareholder value has been wiped out, sinking the company’s market cap back below that of General Motors (GM) and Ford. Tesla’s benchmark bonds now trade at just 81c on the dollar, pushing their yi...
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