Analyst lowers Tesla price target due to sales decline

Analyst Adam Jonas from Morgan Stanley has lowered his price target for Tesla shares. He decreased it to $410 from $430 due to lower delivery expectations. Jonas still has a positive outlook on Tesla, maintaining an "overweight" rating. This new target suggests a potential increase of 73.5% from the last closing price. However, he revised his first-quarter delivery estimates down to 351,000 cars, which is a decline of more than 9% compared to last year. Previously, he had expected 415,000 deliveries. For the whole year, Jonas expects deliveries to drop by about 10%, contrasting with his earlier forecast of nearly 8% growth. He attributed these cuts to increased competition, an aging vehicle lineup, and negative public sentiments towards the brand. Concerns have been growing about Tesla's image since CEO Elon Musk became involved in U.S. politics. Reports of vandalism against Tesla vehicles and dealerships have also surfaced recently. Investor sentiment has soured, with about 20% of surveyed investors predicting significant declines in deliveries. Currently, Tesla shares are on track for their ninth straight week of losses and have fallen over 41% this year.