Tesla Inc (NASDAQ:TSLA, ETR:TL0) shares have dropped more than 4% on Wednesday after analysts labelled it a “growth company with no growth”.
Musk’s electric vehicle business saw its stock rating downgraded to the equivalent of a “sell” rating by Wells Fargo, leading to it shedding more than £11 billion in market value and taking the share price to the lowest point since May.
Wells Fargo believes Tesla’s tactic of cutting the prices of its cars to increase demand was losing its effectiveness.
The US bank pointed to the company’s marginal 3% lift in volumes during the first half of 2023, which came despite Tesla having cut prices by 5%.
Earlier this week, Elon Musk visited Tesla‘s German gigafactory on Wednesday after an arson attack last week left the plant without power for days.
Power was restored on Monday following the attack on a nearby power pylon, which halted production at the Tesla plant.
Tesla shares have tumbled more than 31% in 2024 and its downturn has led to it falling out of the top ten rankings for the largest stocks in the world.
With a market cap of over US$542 billion, the car maker is now smaller than JP Morgan Chase, Visa, Broadcom and Novo Nordisk (NYSE:NVO).