Tesla shares kick off new week of trading with another drop。

Local time on Monday (February 5th), Tesla fell 3.65% to close at 181.06, a nine-month low, and its market value also slipped to $576.6 billion.。According to FactSet, Tesla had a market capitalization of 7,914 at the end of 2023..$100 million, but also with the company's 1.A record market capitalization of $24 trillion is a far cry。

Germany's SAP will no longer buy cars from Tesla

On the news, there are reports that German software giant SAP will no longer purchase company cars from Tesla due to delivery delays and price fluctuations。

Regarding Tesla's delivery delays, or related to its Berlin plant shutdown。Last month, Tesla said in a statement that due to changes in the situation in the Red Sea region led to changes in transportation routes, resulting in component shortages, its plant in Berlin, Germany, will be suspended from January 29 to February 11 Most of the car production work。

In terms of price volatility, the report quoted SAP fleet manager Steffen Krautwasser as saying that Tesla's prices are more volatile than those of other manufacturers, which makes planning more difficult and also poses higher risks to the company。

Last month, Tesla launched a wave of price cuts in Germany.。In mid-January, Tesla reduced the price of Model Y Long Range and Performance by 5,000 euros to 49,990 euros and 55,990 euros, respectively, by 9% and 8%, respectively..1%。

Although Tesla did not explain the reason for the price cut, according to the German Federal Motor Vehicle Administration (KBA), Tesla's new vehicle registrations in Germany fell 9% to 63,685 in 2023, compared to Germany's overall EV sales growth of 11.4%。As a result of this situation, Tesla lost its position as the largest seller in the German electric vehicle market, and Volkswagen took 13.5% market share more than Tesla's 12.1%。

Tesla's multiple price cuts in 2023 and 2024 have also raised a new issue, namely that the resale value of Tesla's used cars has been greatly reduced.。

It's worth noting that in addition to SAP, U.S. car rental companies Hertz and Sixt also recently announced that they will cross Tesla off their list of rental cars.。This trend also seems to be confirmed by new data from the industry service Dataforce, which shows that Tesla is less represented among major customers in Germany, with its car ownership in Germany as of 2023 at just 3,450 units, even though its share in large fleets is just over one percent.。

Piper Sandler cuts Tesla price target

In addition to this, Tesla's share price under pressure is also related to its target price being lowered。Over the weekend, Piper Sandler cut Tesla's price target, citing lower delivery expectations this year.。

Piper Sandler has cut Tesla's price target to $225 from $295, but still maintains the stock's "overweight" rating。Piper Sandler said the price target cut was a move made after considering Tesla's fourth-quarter earnings call and reviewing its annual report.。Piper Sandler also expects Tesla to deliver 1.93 million vehicles in 2024, up from its previous estimate of 2.18 million.。

However, Piper Sandler remains bullish on Tesla's long-term prospects and believes investors should use the first half of 2024 to understand Tesla's other non-automotive segments, such as energy storage.。

Piper Sandler says Tesla is wrong to focus on Cybertruck over cheaper, more attractive cars。Piper Sandler believes that non-automotive catalysts may emerge and will drive Tesla's multiple expansions。He also admitted that he was too optimistic about the growth of Tesla's car production.。Piper Sandler said the company's delivery growth will almost certainly slow in 2024 and 2025.。

Despite the stock's plunge, Tesla's stock is still in the market at 57% of 12-month expected earnings..75 times to trade, compared to 24 for Meta.10 times Amazon's 40.97 times。By this standard, the electric car maker is among the top seven in the U.S. stock market.。