Investment risk: alarm for -40% on a security

The Credit Suisse alarm

The representatives of the Swiss bank do not use half terms. The Tesla title, according to the Credit Suisse alarm, risks a collapse of 40%. In this case the enemy is competition. So far the market niche of the electric car par excellence has always been in the hands of the Elon Musk company. But Credit Suisse's alarm on the fate of Tesla creates a new anxiety for investors. Many people ask themselves: is it the case to sell Tesla shares?

The analysts view

Credit Suisse is cutting the rating that becomes underperform with a price target of no more than 200 dollars. In other words -0% compared to the current 350 or so. The analysts' view remains fundamentally fractured. The consensus sees a target price of $ 273.38 on average. But while the forecasts of the experts speak of a Buy judgment in 11 cases, as many as 16 advise to sell.

Investment and market risk

Many difficulties encountered recently by Tesla. The problems related to the production and especially to the delivery of the models, did not help the investors. For this reason, according to analysts' forecasts, the risk on the markets for the Tesla share increases. The competitive advantage of the company continues, but the competition, especially from Ford and its SUV, are now very close.

Investment strategies on Tesla

If you want to buy Tesla shares (TSLA) you will have to take into account the position of the experts and the advice of the analysts. The ratings, in fact, seem to weigh more towards the sale. But it is also true that Tesla's investment strategy is oriented towards the creation of new factories. Recently it was Elon Musk himself who announced his intention to establish plants in Germany. A challenge to the automotive market at a time when the passenger car sector is going through a real revolution. Not only that, but Germany itself, the home of European automobiles par excellence, is going through a very delicate economic crisis.

The German economy

In fact, the German economy has managed to save itself from the technical recession by a whisker. The last figure on the gross domestic product speaks of a + 0.1%, which allowed the German economy not to fall into the abyss. Now, however, with Tesla's challenge, it will be interesting to see Volkswagen's countermove but also Ford itself.