Zhitong App noticed that on Wednesday, Tesla (TSLA.US) fell for the third consecutive day. So far this week, Tesla's stock price has dropped by over 11%, leading to a market value loss of over $70 billion. Previously, Morgan Stanley analyst Adam Jonas lowered Tesla's target price from $345 to $320, citing a continued soft demand for electric vehicles in major markets despite significant price cuts.
Morgan Stanley, along with other analysts, revised down Tesla's delivery prospects. Weak sales in China in February exacerbated concerns about slowing growth and intensifying competition.
Jonas mentioned, &#34;There is an oversupply in the Chinese electric vehicle market, leading to a series of price cuts,&#34; and he expects price competition to persist throughout the year.
He added, &#34;Although Tesla may be the most technologically advanced car company in the world, its product line may be the oldest among all major OEMs, with almost all product lines launched before 2020.&#34;
<h2>Competition from BYD</h2>
Chinese electric vehicle giant BYD, aiming to surpass Tesla as the world's largest electric vehicle seller, lowered the price of its cheapest car, the Seagull, by 5% on Wednesday, fueling the intense price war in China.
Tesla is not expected to launch a new, cheaper model until the end of next year. This year, the company introduced a new compact sedan, Model 3, in the United States, with no significant design changes. Despite unveiling an electric truck, Tesla CEO Musk stated that mass production of the truck will not begin until next year.
Tudor Pickering analyst Matt Portillo stated, &#34;To justify Tesla's current stock valuation, it needs a mass-market car, which Tesla clearly is not providing.&#34;
He also mentioned that Musk has yet to fulfill his promise of achieving fully autonomous driving over the years, adding pressure on Tesla's stock.
Despite Tesla lowering prices to boost demand for over a year, the company predicted a &#34;significant decrease&#34; in delivery growth this year in January.
Over the past year, high interest rates have caused consumers to reconsider purchasing big-ticket items like electric vehicles, dampening demand and raising concerns about the cost, charging, and battery range of electric vehicles.
Analysts suggest that Tesla's first-quarter deliveries may be affected by supply chain disruptions caused by the semiconductor shortage, the suspected arson at the Berlin factory, and the shutdown of the California factory to prepare for the production of the new Model 3.
Baird Equity Research analyst Ben Kallo mentioned in another report, &#34;A series of one-time production interruptions have made the first-quarter arrangements more complex.&#34;

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TSLA

Tesla's stock price has fallen for three consecutive days, dropping more than 11% so far this week, with a market value evaporating over $70 billion. Morgan Stanley has lowered Tesla's target price to $320, citing weak demand for electric vehicles. Chinese electric vehicle giant BYD has also reduced car prices, intensifying competition pressure on Tesla in the Chinese market. Tesla will launch cheaper models in the next year, but analysts believe that new cars targeting the mass market are needed to support Tesla's stock valuation reasonably. Meanwhile, Tesla's progress in autonomous driving technology has been slow, adding pressure to its stock. Tesla predicts a significant drop in delivery growth this year.

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Tesla

Tesla's market value evaporated by $70 billion in three days! Soft demand led to a target price downgrade by Goldman Sachs.