Tesla stock received a downgrade from Goldman Sachs Sunday, following three TSLA downgrades last week. Meanwhile, Cathie Wood's Ark Investment Management continued to sell off Tesla on Friday.
Goldman Sachs analyst Mark Delaney downgraded Tesla stock to a neutral from its previous buy rating Sunday. Delaney also increased the firm's TSLA price target to 248, up from 185. That target is about 3% below where Tesla stock closed on Friday.
"We believe the stock now better reflects our positive long-term view of the company's growth potential and competitive positioning," Delaney wrote.
The analyst added the "primary reason" for the downgrade is that the "market is now giving the stock more credit for its longer-term opportunities."
Delaney also said price cuts and discounts will likely continue to weigh on the global EV giant's gross margins.
Deutsche Bank also added a note on Tesla stock Monday morning. The firm raised its TSLA stock price target to 230 from 200, and maintained a buy rating on the stock.
Tesla stock fell 6% to 241.05 Monday during premarket trade. On Friday, shares dipped 3% to 256.60. Last week, TSLA fell 1.5%. Shares are up around 18% in June.
Cathie Wood Is Selling
Wood's Ark Investment Management sold 27,841 TSLA shares for around $7.1 million Friday, based on the closing price of 256.60. The Tesla sell-off was done through ARK Innovation ETF and ARK Next Generation Internet ETF. As of Monday, TSLA is the top holding of those two funds.
After buying up Tesla on the cheap throughout 2023, Cathie Wood has been selling in June. Wood has now sold nearly 494,000 TSLA shares in June. Before this months sell off, Cathie Wood's funds purchased more than 1.3 million TSLA shares in 2023. Wood has now sold more than 780,000 shares this year.
This Cathie Wood Stock Is Outperforming Even Tesla
Tesla Stock
Shares are up around 122% since Jan. 3. However, Tesla is down 41% from the all-time high 414 it hit in November 2021.
Tesla is well extended past a 207.79 buy point from what's either a cup or a double-bottom base. It's possible TSLA is building handle on a consolidation going back to late September. However, Tesla could use a handle with some length and depth.
Shares are about 30% above their 200-day/40-week moving average. That's the most extended they've been since the stock marked its peak in November 2021.
Tesla stock ranks third in IBD's automaker industry group. It has a 99 Composite Rating out of 99. Tesla has a 92 Relative Strength Rating and its EPS Rating is 93 out of 99.
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