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Tesla (TSLA) shares closed 4% lower on Tuesday after it was revealed that its China shipments fell in February. Another reason was the move by BofA Securities managing director John Murphy to cut his price target on the stock to $380 from $490.
Murphy explains there were four reasons why he made the move, including a lack of news on the automaker's low-cost model and international sales. He also highlighted the divisiveness surrounding CEO Elon Musk. "Elon's polarization out there with some of his comments has certainly made some people fearful of the stock, but also of the brand itself. We think that's probably a bit overblown, but certainly out there."
What's the fourth reason? Watch the video above to find out.
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This post was written by Stephanie Mikulich.