Wells Fargo impact on Tesla stocks

Tesla shares fell nearly 2 percent after Wells Fargo downgraded its rating for the company. Tesla shares fell nearly 2 percent after Wells Fargo expressed concerns about the negative impact of Tesla’s price cuts on demand for its electric vehicles and downgraded its rating from “Equal Weight.” In a note, Wells Fargo significantly lowered its price target on the automaker’s stock, from $200 to $125 per share. US-based automaker Tesla continues to struggle with a global slowdown in demand for electric vehicles following a price war that hurt margins and cost it an estimated $200 billion in market value last year. Investor concerns about the company’s future have grown since Tesla CEO Elon Musk warned in January that the company’s growth would be “significantly lower” this year. “We can all agree that the price wars in China have been brutal, but there is a sense across the industry that most of the price reductions will start to fade in the spring/summer of 2024,” Wedbush analyst Dan Ives said.