Analysts Are Downgrading These 5 Stocks

01. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 91

On April 20, Tudor Pickering analyst Matt Portillo downgraded Tesla, Inc. (NASDAQ:TSLA) to Sell from Hold. Tudor Pickering analyst Matt Portillo believes that Tesla’s focus on boosting sales at the expense of profits could jeopardize its higher stock-market valuation. The downgrading of stock from hold to sell is the first such downgrade since mid-January.

On April 21, following the downgrade, Tesla, Inc. (NASDAQ:TSLA) shares saw a steep decline of 9.75%, reaching lows not seen since January, as the electric vehicle (EV) manufacturer’s gross margins dipped below 20% for the first time in nearly three years. Wall Street analysts responded to the earnings report that showcased a drop in profits from $3.3 billion to $2.5 billion, resulting in numerous estimate cuts amid mounting concerns over margin pressure. The pressure has been attributed to Tesla’s decision to slash prices six times this year, with two cuts being implemented this month, in a bid to stimulate demand for its EVs.

You can also take a look at 12 Best Covid Treatment Stocks to Buy Today and 10 Best Edge Computing Stocks to Buy Now