Electric car company Tesla has long been an investor favorite and one of the biggest winners on Wall Street, and just 15 months ago it was valued at more than $1,000 billion. The share price has collapsed over the past year, and last year the stock fell 65 percent to a market value of less than $400 billion.
Last weekend, Tesla announced that it would lower prices in an effort to increase sales. This led to several major banks lowering their price target, with, for example, Wells Fargo lowering its price target from $230 to $130.
alternatives in China
Deutsche Bank points out that the Chinese company Nio is the best choice in the electric vehicle sector.
We think Nio is very attractive. They note that the company has a strong business profile, and they believe the company will see significant volume growth in 2023, the bank wrote to CNBC. The stock closed on Friday at $11.8, down 60 percent from last year.
Moreover, the big bank believes that BYD is a good candidate for acquisition, and among others, Warren Buffett’s Berkshire Hathaway owns a stake.
For his part, hedge fund manager David Neuhauser believes Volkswagen is a good buy in 2023.
– In terms of volume, I think Volkswagen will be the winner this year. Despite the fact that Tesla is in a strong financial position, Volkswagen is making much better margins, and I think this stock will be a winner, Neuhauser writes.