Wednesday , May 25 2022

Tesla rolls after RBC launches a brakes on an electric vehicle manufacturer


The story of the growth of Tesla Inc. (TSLA) is endangered, according to the latest RBC report on the manufacturer of electric vehicles.

The analysts of this company reduced the value of the shares to achieve a weaker outperform result, which fell by 3.7% to $ 287.81 in trading on Wednesday.

The company also reduced the company's target to $ 245 with $ 290, saying Tesla's growth expectations were too high.

"It's not that we do not believe Tesla can grow over time, our model shows a solid LT growth, but the current assessment is already considering excessively high expectations," wrote analyst Joseph Spak. "It seems that the company is more tactical when it comes to a message that is positive in the long run, but it means a pressure on the growth of growth expectations – which in our opinion is too high to justify the current levels, let alone to add positions."

Collection history: How Tesla electrified the automotive industry

The downgrade comes only days after Tesla's stake hit after CEO Elon Musk announced that it cut its global workforce by 7% after it grew by 30% a year earlier.

"Tesla will have to make these cuts while increasing the production rate of the model 3 and making many improvements in production in the coming months," Musk said in a letter to employees. "Major improvements in scale and design are crucial for Tesla to achieve the economies of scale required for the production of a standard range (220 miles), the standard interior of the model 3 to $ 35,000 and is still a viable company."

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