Tesla Share Price Fell After HSBC’s ‘Reduce’ Rating on Coverage

The Tesla Inc (NASDAQ: TSLA) share price fell 5.46% on Thursday after HSBC initiated coverage of the electric vehicle manufacturer's stock price and gave it a ‘reduce’ rating alongside a $146 price target. The evaluation sheds light on Tesla's current and intriguing prospects.

Tesla, founded by Elon Musk, has become synonymous with electric vehicles and has achieved remarkable success in this domain. Its electric cars have been the primary driver of revenue and profits, captivating consumers worldwide with their cutting-edge technology and sustainability initiatives. 

However, according to HSBC's analyst, Tesla's vision extends far beyond the automotive industry. As Tesla envisioned, the future encompasses a diverse array of technologies and ventures, including robotics, autonomous vehicles, energy storage, and supercomputers.

While Tesla's electric vehicles have garnered significant attention and financial success, the company's ambitions are directed toward revolutionising multiple sectors.

Robotics is a pivotal component of Tesla's future strategy. Integrating robots into manufacturing processes can enhance efficiency, reduce costs, and improve quality control. Moreover, developing autonomous vehicles is another cornerstone of Tesla's vision. 

The pursuit of self-driving cars has the potential to disrupt the entire transportation industry, making travel safer and more convenient. Energy storage is yet another sector where Tesla aims to make a substantial impact. 

The company's energy storage solutions, such as the Powerwall and Powerpack, have the potential to revolutionise the way we store and utilise electricity, enabling cleaner and more sustainable energy grids.

Additionally, Tesla is making strides in the field of supercomputers. These advanced computing systems are crucial in powering the complex algorithms and artificial intelligence required for autonomous vehicles and other cutting-edge technologies.

While Tesla's ambitions are grand, and its potential for reshaping industries is undeniable, HSBC's analysis provides a word of caution. The expected cost of capital for these ambitious ventures should be considerably higher than the group average.

The heightened cost of capital reflects the regulatory hurdles and technological challenges Tesla faces in pursuing these transformative technologies.

In conclusion, HSBC's coverage of Tesla provides a nuanced perspective on the company's prospects. While Tesla's electric cars have already achieved significant success, the company's broader vision encompasses robotics, autonomous vehicles, energy storage, and supercomputers. 

Tesla share price. 

The Tesla share price fell 0.74% to trade at $208.25 from Thursday’s closing price of $209.98.