at num Maran Capital we bring you the latest stock news each day please like And subscribe so we can bring these articles to you each day thank you today November 9th 2023 yhbc says Tesla could fall 30% from here sometimes analyst price targets matter shares of Tesla stock sank about 6% in afternoon trading this move followed a sell rating from HSBC analysts along with a $146 price Target singl man risk and the profitability execution timeline for Tesla's ideas drove this bearish rating shares of electric vehicle maker Tesla NASDAQ TSLA are getting hit hard today as the three major indices all bleed into the red in early afternoon trading shares of Tesla stock dropped about 6% today among the leading decliners in the market and a significant contributor to the decline of market cap weighted indices today while some macro factors can certainly be pointed to as reasons for today's decline in Tesla and other high growth stocks namely a disappointing Bond auction leading to surging yields Tesla has its own company specific headwind investors are focusing on today HSBC initiated coverage of Tesla today providing a very dim view of the EV player with a sell rating and a $146 price Target HSBC is penciling in declines of more than 30% for Tesla investors let's dive into what HSBC analysts believe could lead to such downside in what to make of today's move Tesla stock syns on bearish analyst report hsbc's view on Tesla isn't unique in fact seven analysts have put sell ratings on the stock with more sell or hold equivalent ratings than buy ratings on Tesla existing right now that said it's the key risk factors hsbc's analysts pointed out that appears to have resonated with investors today the company noted in its analysis that Elon Musk while a Visionary and clearly an incredible asset to the company could be a major risk analysts noted that musk's prominence presents a considerable singleman risk suggesting that if something were to happen to musk the investment thesis behind this company could be blown additionally HSBC pointed out that a significant amount of Tesla's valuation is tied to future businesses in robotics supercomputing and autonomous driving however these businesses will all likely require a significant amount of capital to ramp up and are likely to face significant regulatory scrutiny thus the expected cost of capital for these businesses should be well above Tesla's average given the Regulatory and technological challenges they face personally I think these risks the HSBC analyst team brings up are worth considering and the market has clearly decided to take another look at Tesla stock through perhaps a more bearish lens today of course Tesla remains among the largest and most influential companies out there and this report isn't going to change that however it might just change how some investors view the former hypergrowth company thanks for watching
