Shulou(Shulou.com)11/24 Report--

According to CTOnews.com news on June 22, Tesla shares fell 5.5% on Wednesday, the biggest one-day drop in two months, closing at $259.46 and losing $47.5 billion in a day's market value (CTOnews.com Note: currently about 341.05 billion yuan).

Tesla's share price has risen by about $93, or 52%, in the past month, increasing the company's market capitalization by nearly $300 billion.

In a note to investors on Wednesday, Dan Levy, an analyst at Barclays, downgraded Tesla from buy to hold and lowered his target share price from $260to $220. he said the recent rise in Tesla's share price ignored short-term problems with the stock's fundamentals.

"We believe that the recent rise in the stock may be a push for artificial intelligence and the opening up of Tesla's supercharging network to other brands," Levy said in the report. "however, we think the wisest thing to do is to wait and see for the time being."

Levy is more focused on Tesla's existing automotive business than on artificial intelligence opportunities. He also believes that profit margins could be hurt because Model 3 appears to be in excess inventory and further price cuts may be needed to increase production of Model Y at Giga plants in Austin and Berlin, Texas.

In spite of this, Levy is still optimistic about Tesla's long-term prospects. "We still think that Tesla is the long-term winner of traditional carmakers in the competition to move into the electric car world," Levy said. But "recent fundamentals must be taken into account."

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