Tesla stock drops again after Goldman Sachs downgrades, as yet another Wall Street firm slashes rating

“While the primary reason for the change is that we think the market is now giving the stock more credit for its longer-term opportunities post the recent rally, we’re also cognizant of the difficult environment for new vehicles that we think will continue to weigh on Tesla’s automotive non-GAAP gross margin this year,” said the note, written by analysts led by Mark Delaney. The team’s price target was increased, to $248 from $185.

After cutting car prices earlier this year, Tesla has been trying to tweak them higher where possible.

Tesla stock has come roaring back in 2023, up 108% as investors have flocked back to technology stocks and especially those seen as artificial intelligence plays, such as the automaker. Deals that allow rivals such as Ford
F,
-1.20%
to use Tesla’s charging network have also been seen as a boost for shares, though some have questioned whether Tesla in the long run will sacrifice its position that way.

See also: Rivian inks Tesla fast-charging agreement, joining Ford and GM

The gains for Tesla this year follow a tech rout in 2022, which left the electric-car maker 65% lower.

See also: Tesla’s EV charging standard is becoming widely adopted, in another boost for the stock

Shares of Tesla
TSLA,
-3.03%
got hit by other downgrades last week. Morgan Stanley’s bullish analyst Adam Jones cut the shares to the equivalent of hold from buy, though increasing his price target to $250 from $200 per share, as he opined that Tesla will keep cutting its auto prices as competition stiffens.

That followed a downgrade from Barclays analysts who warned against a “too sharp” rally for the stock, in a similar move to Morgan Stanley. Rounding out the week, DZ Bank reportedly hit Tesla on Friday with a rare double downgrade, from buy to sell.

Read: Tesla Stock Catches a Double Downgrade. It’s Analysts vs. a Golden Cross.