Tesla Shares Slip Premarket After 3-Day Losing Streak Despite Broader Cheer: What's Going On?

Shares of electric vehicle maker Tesla, Inc. TSLA dipped in premarket trading on Monday, raising concerns amid a broader market and tech stock rally.

Tesla’s stock has been on a downward trend since last Wednesday, even after the company reported better-than-expected earnings and revenue for the second quarter and maintained its delivery guidance.

Analysts highlighted the role of “other income” in boosting the results, while some expressed unease over the lack of clarity on the company’s margin trajectory. CEO Elon Musk‘s remarks hinting at possible future price cuts further dampened investor sentiment.

UBS downgraded Tesla from Buy to Neutral on Monday, although they raised the price target from $220 to $270.

In another development, Musk’s social media platform Twitter rebranded as “X,” drawing skepticism from analysts about its potential impact on advertisers.

Amid the uncertainties surrounding margins, the stock might remain rangebound, but the anticipation surrounding Tesla’s Cybertruck could offer some support against potential downside risks.

In premarket trading, Tesla shares were down 1.18% at $256.96, according to Benzinga Pro data.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

See Also: Everything You Need To Know About Tesla Stock

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