In This Article:
Tesla (TSLA) shares begin to recover after experiencing their worst day since 2020 on Monday, as the stock erased its post-election gains.
UBS analysts cut their price target on the EV stock, while Morgan Stanley suggests the buying the dip on Tesla
Morning Brief hosts Brad Smith and Madison Mills discuss President Trump's support for Tesla, potential impacts on consumer behavior, and concerns about Tesla's market position, particularly in Europe and China.
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
Another trending ticker we're watching. Shares of Tesla regaining some ground so far this morning. That's after experiencing its worst day since 2020 with its price sinking to levels not seen since October of last year. UBS cut its price target for the stock, expecting Tesla deliveries to fall by 5% year over year due to softer demand. Meanwhile, Morgan Stanley analysts suggesting investors buy the dip. President Trump promising on Truth Social to buy a brand new Tesla as a show of support for Elon Musk. There you're seeing the post on Truth Social saying that the radical left lunatics are trying to illegally and collusively boycott Tesla, one of the world's greatest automakers and Elon's quote-unquote baby. Um, first and foremost, we should note that in a free market, there's no such thing as an illegal boycott because consumers can purchase whatever they want. That aside, for Tesla and the annexation that Elon Musk has selectively made to cozy up to Trump, that was a decision that he made as well. So all these things considered, investors and consumers, they also have their own decision about how close they want their trade to be tied to the Trump team and the administration. And then additionally, for consumers, they also get to decide whether they want an electric vehicle. And oh yeah, by the way, for the electric vehicle purchasers out there, more of them typically lean left, which is interesting if Trump is trying to bolster more purchases for Musk, uh, because most of those purchasers of his supporters are really more ice, uh, internal combustion engine owners out there.
Right. It's it's just interesting. I mean, with Tesla, the the story is twofold, right? Obviously, there is concern about consumers switching away, to your point, Brad, from the brand here. But also you have concerns about the broader slump in sales, and whether or not the lack of availability of additional models is something that's going to continue to weigh on shares moving forward. We're consistently seeing their competitors beating them out, especially abroad in places like Europe and China. And you've got the stock recovering today, but only after the biggest sell-off in five years. So certainly a stock that we're going to continue to monitor.
