Tesla Inc. (NASDAQ:TSLA) shares maintained an upward trajectory today, climbing over 2% despite a recent analyst downgrade and potential unionization headwinds. On Thursday, HSBC analysts adjusted Tesla's rating to Reduce, setting a price target of $146. The downgrade reflects concerns about the profitability of upcoming projects like the autonomous software subscription service, Optimus robots, and Dojo supercomputer service. The analysts underscored the risks associated with Tesla's reliance on CEO Elon Musk, who juggles multiple ventures.
The company's stock performance defied these cautionary stances, holding steady above the crucial $210 support level. A breach below this threshold could signal a 24% drop in long-term support, yet investor confidence seems unshaken for now. The resilience comes even as President Biden expressed support for the United Auto Workers (UAW) union's efforts to unionize Tesla factories—a move that could affect the company's future profitability. The UAW has seen recent successes in organizing efforts at other auto companies, bolstering their campaign amidst political backing.
HSBC also cast doubt on Tesla's ambitious target to ramp up production to 20 million vehicles annually by the end of the decade. This skepticism is set against a backdrop of a slower-than-anticipated global shift to electric vehicles (EVs). Despite these challenges, Tesla had experienced a share price drop in August, which it has since recovered from.
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