Tesla (TSLA, Financial) stock slid about 5% on Thursday morning as analysts flagged near-term challenges. Baird has named Tesla a Bearish Fresh Pick, citing mounting production obstacles and demand uncertainty ahead of first-quarter deliveries.
Analysts pointed to production downtime linked to the Model Y refresh as a key concern. They noted that intra-quarter sales data from Tesla's key regions undermined the consensus Q1 delivery target of 437,500 vehicles. Instead, Baird revised its estimate to 369,400 units, reflecting risk factors in achieving typical quarterly deliveries of roughly 300,000 Model Ys.
Weak sales across Europe, the United States, and China further fueled caution. In China, February deliveries plunged 49% year-over-year, according to the China Passenger Car Association. Additionally, concerns over key man risk tied to CEO Elon Musk's political and cryptocurrency activities have added pressure on investor sentiment.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.