Tesla's Downhill Drive Shows No Signs Of Slowing: What's Dragging The Stock?

Tesla, Inc. TSLA shares were lower in pre-market trading on Tuesday, as they appear on track to extend their slide.

On Monday, the stock ended down 3.65% at $181.06, after being down as much as 6.87% in late-morning trading. At the intra-day low, the stock touched its lowest level since May 18, 2023.

Tuesday’s premarket weakness comes amid the indecision shown by the stock futures after the S&P 500 Index and the Dow Industrials scaled a record high last Friday. The stock also took a hit from a downgrade by Daiwa Securities.

Analyst Jairam Nathan downgraded the stock from “Buy” to “Hold” and cut the price target from $245 to $195, according to Barron’s.

The re-ratings of estimates and price targets come as the company struggles to push volume and expand margin. On Monday, Piper Sandler’s Alexander Potter reduced his price target, premising his action on an aging pipeline and a lack of budget model EV.

In premarket trading, the stock fell 2.27% to $176.95, according to Benzinga Pro data.

See Also: Everything You Need To Know Tesla Stock