Tesla shares fell nearly 10% Thursday after the company reported lackluster first quarter results Wednesday afternoon, with CEO Elon Musk flagging affordability issues, the impact of rising interest rates, and economic uncertainty in a follow-up conference call.
After a series of six price cuts this year eroded Tesla’s margins in the first quarter, leading net income to drop 24% year over year to $2.51 billion, a raft of analysts slashed their price targets for the EV giant’s stock Thursday. The CEO of investment research firm New Constructs, David Trainer, even made the case that Tesla shares could fall 80% to just $28 as competition in the EV space heats up.
