Shares of electric vehicle maker Tesla, Inc. TSLA experienced a sharp decline in premarket trading on Monday, further extending the downturn observed since last Friday.
The premarket pullback can be attributed to several negative catalysts. Mizuho Securities analyst Vijay Rakesh downgraded Tesla, along with Rivian Automotive, Inc. RIVN and Nio, Inc. NIO, all from Buy to Neutral, according to Benzinga Pro data.
The analyst based his revised outlook on near-term demand weakness and tightening liquidity.
The timing of this negative rating action couldn’t be worse for Tesla, as the company prepares to announce its first-quarter deliveries.
Gary Black of Future Fund raised concerns on Sunday about Tesla’s first-quarter volume potentially falling well below the consensus estimate, currently set at 468,000 units. Additionally, he cautioned that sales might not see sufficient growth in the second quarter to achieve year-over-year growth. In light of slowing sales growth, the fund manager suggested that the company’s valuation appears unsustainable.
Tesla’s stock may also face pressure from broader market negativity, with stock futures currently trading lower.
In premarket trading, Tesla declined by 1.29% to $168.62, according to Benzinga Pro data, while Rivian experienced a steeper drop of 1.76%.
See Also: Best Electric Vehicle Stocks
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