Tesla
(TSLA)
Shares are down this afternoon following the automaker’s decision to halt accepting new orders for two of its leading electric vehicles in China.
The firm states that it will no longer accept new orders for its Model S and Model X in the biggest automobile market globally following President Xi Jinping’s imposition of increased retaliatory tariffs.
125% on U.S. imports
.
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Beijing’s tariff announcement holds importance for Tesla because it affects the pricing of both of these flagship models in the United States.
Tesla Has Faced a Triple Blow of Adverse Winds
Tesla stocks have already declined by over 40%.
From their peak for the current year, however, Steve Westly, who previously served as a board member at the electric vehicle leader, isn’t completely persuaded that the toughest times have passed just yet.
The reason being, the firm has faced three significant challenges all at once.
He recently spoke with CNBC during an interview.
.
Tesla has lagged behind in introducing new products, has become a target in a political controversy, and also faces increasing competition from Chinese companies like BYD.
(BYDDY)
has surged dramatically over the past few months.
And now, along with everything else, TSLA stock also has to contend with the growing tensions between the U.S. and China.
trade war
That “isn’t going to assist them at all,” Westly added.
Tesla Has Fallen Behind in Self-Driving Technology
In his CNBC interview, Steve Westly adopted a cautious stance regarding Tesla’s stock, as he believes that the Cybertruck, which was their sole product launch since 2020, hasn’t performed well, according to him.
Moreover, the car manufacturer is falling behind Waymo in self-driving technology, considering the efforts of Google.
(GOOGL)
brand recently
declared 200,000 trips each week
Meanwhile, TSLA is “still not in the competition.”
Even BYD has introduced a sophisticated driver assistance system (ADAS) named “صند
God’s Eye
that it provides in its vehicles at no cost — compared to $9,000 for Tesla’s full self-driving (FSD) option.
Therefore, “Tesla needs to put in more effort to become competitive in Full Self-Driving,” Westly concluded.
Experts HaveBeen Reducing Their Price Forecasts for Tesla’s Share_Price
Wall Street has likewise reduced its price forecast for Tesla stock in 2025.
Nevertheless, analysts remain less bearish on TSLA compared to Steve Westly’s stance.
mean target
on the EV stock still sits at $309, indicating potential upside of about 24% from current levels.
Upon the release date,
Wajeeh Khan
did not hold (directly or indirectly) any stakes in the securities mentioned within this article. This piece contains information and data intended purely for informative reasons. Please visit ecosundiaries.com Disclosure Policy for additional details.
here
.
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