The electric car company Tesla has long been an investor favorite and one of the big winners on Wall Street, and only 15 months ago the company was valued at over 1,000 billion dollars. The share price collapsed during the course of last year, and in the last year the share is down 65 percent to a market value of less than 400 billion dollars.
At the end of last week, Tesla announced that it will cut prices in an attempt to increase sales volume. This led to several major banks downgrading their price target, where, for example, Wells Fargo jacked down its price target from $230 to $130.
Alternatives in China
Deutsche Bank points to the Chinese company Nio as its top choice in the electric car sector.
– We believe that Nio is very attractive. They point out that the company has a strong brand position, and believe the company will see large volume growth in 2023, the bank writes to CNBC. On Friday, the stock closed at a price of 11.8 dollars, down 60 percent in the past year.
Furthermore, the big bank believes that BYD is a good acquisition candidate, in which, among others, Warren Buffett’s Berkshire Hathaway has a stake.
Like Volkswagen
Hedge fund manager David Neuhauser, for his part, believes that Volkswagen is a good buy in 2023.
– In terms of volume, I believe that Volkswagen will be this year’s winner. Despite the fact that Tesla is in a strong financial position, Volkswagen achieves significantly better margins, and I think this stock will be a winner, writes Neuhauser.
