Tesla is on pace for its largest daily stock price drop in more than three months Thursday after reporting quarterly earnings that met analysts’ top and bottom line expectations but amplified Wall Street’s concerns about the Elon Musk-led electric vehicle maker’s ability to deliver on hefty profit expectations—particularly as the firm keeps cutting prices.Tesla’s stock slipped 7% in early trading, poised for its worst day since January 3 and wiping out $40 billion in market capitalization.
It was a “disappointing” quarter for Tesla, Bernstein analyst Toni Sacconaghi wrote in a Thursday note to clients, moving down his estimate for Tesla’s annual earnings by more than 20% and maintaining his $150 price target, implying 17% downside from Tesla’s share price at Wednesday’s market close.this year, is “undermin[ing]” its profitability and will find it “very difficult” to maintain any price advantage in a “hyper-competitive” automotive market.