Hawthorne, California – Tesla stock, known by the ticker TSLA, hit a new 52-week low as it opened Thursday below its late April 2023 low. This drop came after a downgrade from Deutsche Bank analyst Emmanuel Rosner, who shifted the stock’s rating from buy to hold. The downgrade was influenced by Chief Executive Elon Musk’s decision to prioritize the company’s robotaxi program over its more affordable next-generation vehicle. Rosner also reduced the price target for Tesla shares to 123 from 189, citing concerns about delays in the $25,000 Model 2 release.

The shift in focus to the robotaxi program indicates a change in Tesla’s strategic direction. Rosner highlighted the challenges associated with achieving full driverless autonomy, which involves significant technological, regulatory, and operational hurdles. The analyst suggested that this shift could lead to a transition in the ownership base of the company, with EV investors potentially stepping back and AI/tech investors taking their place with a longer time horizon.

Following the downgrade, Tesla stock experienced a decline of 2.6% to 151.39 during Thursday’s market session, reaching fresh 52-week lows. The stock had previously dropped 1% to 155.45 on Wednesday and 2.7% to 157.11, hitting a 2024 low of 153.75 intraday, on Tuesday. This recent decline brought the stock below its March 14 low of 160.51.

Despite the challenges facing Tesla, Cathie Wood and her Ark Invest funds have been increasing their holdings in the company. On Tuesday, Ark Invest purchased 20,683 shares of Tesla, followed by an acquisition of 66,504 TSLA shares on Wednesday. Wood’s confidence in Tesla’s autonomy push and robotaxi initiatives has been evident in the fund’s increased investment in the company throughout 2024.

Investors and analysts are now eagerly awaiting news on Musk’s strategy for the robotaxi program and the next-generation vehicle during Tesla’s upcoming Q1 earnings call. Analysts are projecting a 42% decrease in Q1 earnings to 49 cents per share, with sales expected to decline by 4.5% to $22.27 billion. The first-quarter performance was already impacted by production issues with the updated Model 3 and factory shutdowns, leading to lower-than-expected deliveries.

As Tesla faces challenges in the EV market, its stock performance has also been affected. TSLA shares are now trading below the 50-day moving average after a decline of around 13% in March. The company currently ranks eighth in the Auto Manufacturers industry group, with a Composite Rating of 32 out of 99, a Relative Strength Rating of 10, and an EPS Rating of 67.

Amidst these developments, the future of Tesla remains uncertain as investors weigh the company’s strategic priorities and the challenges it faces in the evolving EV landscape. The upcoming earnings call will provide further insight into Tesla’s performance and the road ahead for the global EV giant.