(Reuters) – Tesla shares tumbled on Thursday, with Wall Street analysts fearing the electric vehicle maker will be hit by inflation and logistical challenges.
At least five exchanges have lowered their share price target, citing a smoother delivery in 2022.
“The upbeat narrative is clearly going through a rough patch as Tesla must now prove again to Wall Street that the robust growth story is facing a multitude of logistical issues and slowing demand,” wrote Wedbush analyst Daniel Ives.
Tesla shares are down 37% so far this year to a 16-month low of $202.15 in early trading and are set to have their worst day since June.
In its quarterly report, the company pointed out the challenges facing the logistics area due to a possible failure to reach the target of 50% delivery growth this year.
Tesla Chief Executive Elon Musk said on a post-earnings conference call that “demand is a little tougher” but reiterated that the company is pretty confident in a record fourth quarter.
Tesla fell short of automotive gross margin expectations despite the higher selling price, with higher costs to ramp up production at factories in Berlin and Austin.
Higher prices, interest rates and consumer sentiment could jeopardize Tesla’s delivery growth target of more than 50%, JPMorgan said.
Still, with the shift to electric vehicles gaining traction globally, some analysts expect Tesla to be a big beneficiary.
“I don’t question the demand, because electric cars are inevitable. (Tesla) has done a great job, there will be a shift to electric,” said Craig Irwin, an analyst at Roth Capital.
#Tesla #Stock #Falls #Disappointing #Quarterly #Data