Tesla's U.S.

Core Viewpoint - Tesla's stock is facing significant challenges, with a notable decline in U.S. market share and technical resistance levels impacting investor confidence [3][4][9]. Group 1: Stock Performance - Tesla's shares closed at $395.94, reflecting a 7.36% increase, but have remained flat since May, indicating a lack of momentum [1]. - The stock has struggled to break through the $360 resistance level, which has been a recurring issue over the past few months [2][7]. - Analysts have set a 12-month price target of $303.00, suggesting a potential downside of 23.47% from the current price [10]. Group 2: Market Share and Competition - Tesla's U.S. market share fell to 38% in August, marking its first drop below 40% since 2017 and representing an eight-year low [3]. - The company faces increasing competition as rivals introduce new electric vehicle models while Tesla's offerings begin to show age [4]. Group 3: Financial Outlook and Risks - The company has had to reduce prices in China to maintain its market position, raising concerns about margin erosion [5]. - The anticipated robotaxi launch has not met expectations, contributing to a decline in optimism regarding Tesla's future growth [5][6]. - Analysts express caution due to deteriorating fundamentals, despite some maintaining a bullish outlook on Tesla's long-term potential [10][12]. Group 4: Analyst Sentiment - Some analysts, including those from Morgan Stanley and Stifel Nicolaus, have reiterated their Overweight ratings, with price targets above $400, indicating a belief in potential upside [11]. - Despite the current challenges, Tesla's long-term growth story remains appealing to certain investors, although caution is advised in the near term [12].