Tesla Downgraded by Wells Fargo as Price Cuts Fail to Boost Demand, Forecasting Slower Growth

• Wells Fargo downgrades Tesla stock to a "sell" rating, calls it a "growth company with no growth" due to flat sales volumes expected in 2023 and a decline in 2025.

• Tesla's price cuts to boost demand are losing effectiveness - sales only rose 3% in H2 2022 vs H1 while prices fell 5%.

• Sentiment on Tesla stock has dropped, with bullish analyst ratings at the lowest since April 2021 after the company warned of lower growth in 2023.

• Tesla stock has fallen 29% year-to-date, wiping over $224 billion from its market cap and dropping it out of the S&P 500 top 10 companies.

• Despite the selloff, Tesla still trades at a premium 55x forward earnings versus 31x for S&P 500 - but some analysts remain bullish on its long-term growth trajectory.