Tesla shares slide on demand concerns, Elon Musk’s Twitter distraction

Musk previously said in June that he’s leaning toward supporting DeSantis for president in 2024.

Joe Skipper | Reuters

Shares in an electric vehicle manufacturer Tesla Down about 9.5% in Thursday afternoon trade as analysts grow increasingly uncertain about the company’s prospects.

Canaccord Genuity lowered its target price on the automaker to $275 from $304 after the market close on Wednesday, citing “cosmically bad” public sentiment and a “distraught” shareholder base. “Elon Musk does Elon Musk stuff,” wrote George Gianarikas of Canaccord. “Some of it is Twitter-related drama, a lot isn’t.”

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Meanwhile, Tesla on Thursday began offering $7,500 rebates on some of its high-priced electric vehicles in the US, doubling its previous incentives to encourage customers to accept deliveries. It also offers loans in Canada and Mexico. Tesla lowered car prices in China in October.

The price declines for Tesla’s Model 3 sedan and Model Y CUV, which are the company’s most popular and affordable offerings, are being taken as a sign of weaker demand.

The company has also tried to boost sales and deliveries with an offer of 10,000 miles of free charging on its Superchargers for customers receiving their new Teslas in December.

Buyers of Tesla and other US-made electric vehicles will likely be eligible for a $7,500 stimulus stemming from Biden’s Inflation Reduction Act starting in January. Many prospective Tesla owners had postponed the company’s acceptance of their new vehicles until the loans took effect.

CEO Elon Musk’s performance as Twitter’s new owner and CEO has also raised serious concerns among longtime Tesla bulls, who are calling on the company’s board of directors to rein him in and get him focused on the electric car and renewables company to concentrate energies.

Musk took Twitter private in a $44 billion deal that closed in late October, selling about $23 billion worth of Tesla stock to fund the deal. He has since admitted an “obvious” overpayment.

Tesla’s shares are down more than 64% year-to-date.

The best the media could do right now is take Musk's attention away, says McNamee of Elevation Partners

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