Tesla's (TSLA.US) market value evaporated by 70 billion dollars in three days! Weak demand leads to target price downgrade by Morgan Stanley.

Notice that on Wednesday, Tesla (TSLA.US) fell for the third consecutive day. So far this week, Tesla's stock price has dropped by over 11%, causing a market value loss of over $70 billion. Prior to this, Morgan Stanley analyst Adam Jonas lowered Tesla's target price from $345 to $320, stating that despite significant price reductions, demand for electric vehicles in key markets continues to be weak. Morgan Stanley, along with other analysts, have lowered Tesla's delivery prospects, as the company's sales in China were weak in February, raising concerns about slowing growth and increased competition. Jonas said, "There is an oversupply in the Chinese electric vehicle market, leading to a series of price reductions." He expects price competition to continue this year. He added, "While Tesla may be the most technologically advanced car company in the world, its product line may be the oldest among all major OEMs, with almost all products introduced before 2020." Competition from BYD Company Limited China's electric vehicle giant BYD Company Limited, which has replaced Tesla as the world's largest electric vehicle seller, lowered the price of its cheapest car, the Seagull, by 5% on Wednesday, fueling the intense price war in China. Tesla is not expected to launch its next generation of cheaper models until the end of next year. This year, the company introduced a new compact sedan Model 3 in the United States, with no major changes in appearance. Despite introducing an electric truck, Cybertruck, Tesla CEO Elon Musk stated that mass production of the truck will not begin until next year. Tudor Pickering analyst Matt Portillo said, "To justify Tesla's current stock valuation, it needs a mass-market car, and Cybertruck clearly isn't the solution." He also mentioned that Musk has yet to fulfill his promise of achieving fully autonomous driving over the years, which has also put pressure on Tesla's stock. Despite lowering prices for over a year to stimulate demand, Tesla forecasted in January that delivery growth this year would "significantly decline." Over the past year, demand has been affected as high interest rates prompt consumers to reconsider purchasing big-ticket items such as electric vehicles, exacerbating concerns about the cost, charging, and battery range of electric vehicles. Analysts suggest that Tesla's first-quarter deliveries may also be hindered by supply chain disruptions from the Red Sea attack, allegations of arson at the Berlin factory, and the shutdown of the California factory ahead of production preparations for the new Model 3. Baird Equity Research analyst Ben Kallo stated in another report, "A series of one-time production interruptions make the first-quarter arrangements more complicated."