Tesla Inc (NASDAQ:TSLA) shares are down 1.2% to trade at $426.30 at last glance, despite the EV maker reporting better-than-expected earnings and revenue for the fourth quarter. The company's first annual decline in revenue ever is adding some weight, as well as news that it will stop making its Model S and Y vehicles to shift focus to AI and robotics.
In response, four analysts slashed their price targets, including Wells Fargo with its downgrade to $125 from $130. The brokerage bunch leans bearish on TSLA, with 26 of the 41 firms in coverage sporting a "hold" or worse rating. Additionally, the 12-month consensus target price of $390.13 is an 8% discount to current levels.
TSLA is pulling back from its Dec. 22, record high of $498.83, but still sports a 52% nine month lead. Overhead pressure has since emerged at the $460 level, but longer-term support from the 120-day moving average remains in place and is set to contain today's losses.
Now looks like a great time to weigh in with options, as the equity's Schaeffer's Volatility Index (SVI) of 47% sits in the low 11th percentile of annual readings, indicating options traders are pricing in low volatility expectations.
