- Tesla shares turned higher Thursday after selling off in early trade.
- Shares junped 2%, though were still trading near the lowest level in 2 1/2 years.
- The stock is coming off a six-day losing streak fueled by analysts and investors’ concerns about underlying demand, a worry that’s plagued the stock for months.
- Watch Tesla trade live.
Tesla’s recent sell-off abated Thursday as shares turned higher after a six-day bloodbath. Shares hit a session low of $186.23, the lowest level since December 7, 2016, before jumping 2%.
The stock’s losses come as a slew of major Wall Street firms have lowered their earnings expectations, price targets, and so-called “bear case” targets.
Analysts’ urgent commentary in recent sessions, paired with its former largest institutional shareholder dumping most of its stake, reflects a particularly troubling time for the electric-car maker that’s long divided the investment community.
Read more: The investment giant that was once Tesla’s biggest Wall Street backer cut its stake in half last year. Now it’s dumped most of what was left.
Even Baird analyst Ben Kallo, who is one of the most bullish Tesla watchers on Wall Street,, lowered his earnings expectations for the automaker earlier this week and cut his price target for the second time in as many months. He still maintained his “outperform” rating.
“Demand concerns, credibility questions, and messaging/communication (including a recent email announcing ‘hard core’ cost cuts) have weighed on TSLA shares in recent weeks, and we think it could take several weeks/ months for the narrative to shift,” he told clients Tuesday, adding the company’s shareholder meeting in June could prove to be a catalyst for shares.
Tesla shares have fallen 39% this year.
Now read more Tesla coverage from Markets Insider and Business Insider:
THE MODEL 3 THAT NEVER WAS: Leaked supplier documents show how Tesla’s cheapest car is different than originally planned
Tesla closes at a 2 1/2-year low after analyst who cut his price target for the 4th time this year warns it’s facing a ‘code red situation’
Warnings about Tesla are growing louder as Morgan Stanley slashes its worst-case scenario to $10 a share
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