Tesla Shares Reached a New Low for More Than a Year

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On Thursday, Tesla (TSLA) shares reached a new low for more than a year after Deutsche Bank expressed concerns over the company's growing focus on autonomous vehicle products while its profit is under pressure. The electric automaker's shares dropped 2.7% to $151.26 after the brokerage downgraded the stock to "Hold" and decreased its price target to $123 from $189.

Deutsche Bank's commentary followed a Reuters report earlier this month that Tesla (TSLA) decided to cancel its long-promised affordable car that investors hoped would drive growth, while continuing to develop Robotaxis on the same vehicle platform.

Tesla (TSLA) has been striving for greater adoption of its full self-driving advanced driver assistance software ahead of unveiling Robotaxi in August. However, the brokerage pointed out that achieving full driverless autonomy represents a significant technological, regulatory, and operational challenge.

"The delay of Model 2 efforts creates the risk of no new vehicle in Tesla's consumer lineup for the foreseeable future, which would put downward pressure on its volume and pricing for many more years," stated Deutsche Bank analyst Emmanuel Rosner.

As profitability takes a hit from price cuts to boost demand for its electric vehicles, Tesla (TSLA) laid off more than 10% of its global workforce earlier this week, even as it continues to try to revive Musk's huge pay deal from 2018.

The company has requested its shareholders to reaffirm their approval of Musk's $56 billion pay that was set in 2018, but was rejected by a Delaware judge in January.

After shedding 37.4% of its value so far this year, Tesla (TSLA) shares fell to their lowest in nearly 15 months on Thursday, making it the second worst-performing stock on the S&P 500 index. While the company's market capitalization is set to fall by more than $17 billion to about $478 billion, if losses hold, it remains the most valuable automaker in the world.

Technical Outlook
Tesla Inc. (TSLA) stock tanked by 3.55% reaching new lows and trading below the 200-day Moving Average (MA) with a weak Relative Strength Index (RSI) of 31.86