Jefferies analyst questions if Tesla can ‘maintain an edge’ in EV tech

Tesla Inc has made its shareholders a happy lot this year but a Jefferies analyst says it’s likely as far as the stock goes for now.

Tesla stock has about a 4.0% downside

Philippe Houchois slashed his price objective on the electric vehicles behemoth this morning to $250 which represents about a 4.0% downside.

The analyst turned somewhat dovish on Tesla stock today on concerns that it’s losing its edge in EV tech. His research note reads:

Everything Tesla does differently from the rest of the industry can also be done by others if given time, making speed essential to maintain an edge.

But that lead has started to wane due to some feature and battery related delays, Houchois added. According to the China Passenger Car Association, Tesla saw sales of its Shanghai-made electric vehicles tank 11% year-on-year in September.

Other concerns surrounding Tesla Inc

Other reasons Philippe Houchois cited for trimming his price target on TSLA include continued hit to margin in the third quarter and uncertainty related to growth in 2024.

In August, Zack Kirkhorn – the Chief Financial Officer of the Nasdaq-listed firm unexpectedly stepped down as Invezz reported here. A dwindling management team is also why the Jefferies analyst sees a 4.0% downside in Tesla stock.

He agreed that a Cybertruck could help but that’s also facing production challenges while the price of its Model 3 and Model Y was cut again in the United States this week.

Why Tesla price cuts are GREAT for the stock

Another master class by Jeff Lutz!

If you're an investor in $TSLA, you should know why Tesla's cost of goods are falling and price cuts are not as bad as you might think.

Follow Jeff! @thejefflutz pic.twitter.com/9Af4olqS79

— Herbert Ong (@herbertong) October 9, 2023

Earlier in October, Tesla reported a sequential decline in its quarterly deliveries. It is scheduled to report its Q3 earnings on October 18^th.