Tesla Inc. is struggling Tuesday as the electric-vehicle maker’s production woes in China refuse to go away, leading another analyst to slash their 12-month price target on the once high-flying stock.
“With about 13,000 units of production per week and higher than average margins, any production loss at Shanghai is bound to have a significant impact on margins and earnings,” said Daiwa analyst Jairam Nathan, who cut his price target to $800 from $1,150.
Until recently, Tesla was considered the ultimate growth stock, rising 50% last year and closing at $1,145 on April 4, when CEO Elon Musk announced his 9.2% stake in Twitter Inc. Since then, Musk has been engaged in highly public attempt to buy the social media platform. And Tesla’s stock has been in a freefall, sinking to around $635 and wiping out almost half its market capitalization since touching a record high in November.
