Tesla stock cools off after big 2023 rally

Tesla (NASDAQ:TSLA) fell 1.50% in mid-morning trading on Monday as investors sized up the electric vehicle stock ahead of a heavy week of inflation reports that could reset overall market expectations.

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Some industry watchers also noted on Monday that the electric vehicle maker has lowered prices again on the Model 3, with the base version now starting at $42,990. Tesla made significant price cuts across models in the U.S. in January.

On Wall Street, Morgan Stanley is a little cautious on the near-term setup on Tesla (TSLA) after shares rocketed back to over $200.

Analyst Adam Jonas and team reiterated an Overweight rating, but warned the window of opportunity on valuation has closed.

“Further upside from here will require a more substantial narrative change following the March 1st Investor Day. At the same time, we remain concerned about the ability of EV competitors (startups and legacy players) to withstand the cost and scale advantages Tesla enjoys as it continues to drive prices lower and share higher in a potential shakeout for the EV industry.”

As usual, Seeking Alpha contributors have some strong opinions on Tesla (TSLA). Danil Sereda warned that a Tesla sell-off could be in the cards, while Dan Victor thinks there is plenty of upside with consensus revenue and earnings estimates looking conservative.

Now read: Why did Lucid stock sink today? EV competition could hit pricing and margins

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