Tesla Stock Falls as Wells Fargo Cites Demand Concerns

By Will Feuer

Shares of Tesla Inc. were more than 6% lower Friday as the broader market fell and after analysts at Wells Fargo lowered their price target on the electric vehicle maker, citing uncertainty about underlying demand among other factors.

Wells Fargo analysts cut their price target on the stock to $230 from $280 and reiterated their equal-weight rating on the stock.

Tesla shares were down to $208.11 in afternoon trading, while the S&P 500 slipped about 2%. The stock is down about 41% this year. The index has fallen about 25% over the same period.

The analysts said they expect a slight beat on earnings when Tesla reports third-quarter results next week but said they expect headwinds from the strong U.S. dollar to offset benefits from price increases. They also said higher interest rates may weigh on Tesla’s long-term growth.

There is rising concern about underlying demand for Tesla’s vehicles, particularly in China, the Wells Fargo analysts said.

“If consumers are watching costs, a $60K vehicle purchase could get deferred,” the analysts said.

Write to Will Feuer at Will.Feuer@wsj.com

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