Tesla’s stock plummets after devastating Berenberg downgrade – Is this the end for Elon Musk’s electric empire?
Yesterday’s trading saw Tesla’s (NASDAQ:TSLA) shares plummet 3% after a downgrade from Berenberg, who lowered their rating from Buy to Hold. The company also revised their price target from $200.00 to $210.00, citing a limited upside following Tesla’s year-to-date outperformance.
According to Berenberg, Tesla’s recent price cuts are part of a strategic investment in growth. While this focus on volume may lead to near-term margin sacrifices, it will ultimately position the company competitively against upcoming EV launches, thanks to its low-cost processes being replicated in new plants like Berlin and Austin.
Despite the downgrade, Berenberg remains bullish on Tesla’s long-term prospects, highlighting the “significant” opportunity in the smaller vehicle segment.
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