Tech stocks lead shares lower on mixed earnings and interest rate cut concerns

I can't get enough of this story about Tesla (TSLA) falling!

So I'm back (see 6:00am post below) with a new study on Tesla that I just received from Deutsche Bank auto analyst Emmanuel Rosner. I liked this title in his section on Tesla: “Clarity needed on company’s future direction.”

Perfectly said, and most others on the street would agree.

Here's what Rosner says, which goes a long way toward explaining why Tesla stock has been overrun:

“Perhaps most importantly, we view the recent sequence of Tesla news as potentially changing the thesis for investors. With many questions still unanswered, it may be too early to say whether they are particularly pessimistic or just neutral. It is currently unclear whether there is still a drivable version of the Model 2 and if so, how far has the development of the robotaxis progressed and what is the realistic schedule for deployment given the significant technological and regulatory hurdles? We expect Tesla to comment on this. Unfortunately, if Tesla were to confirm that its renewed focus on Robotaxi is at the expense of the Model 2, we would expect that this would create a significantly higher risk profile for the stock and a would eliminate an important reason why many shareholders currently own the stock. More importantly, this change in strategy would also result in Tesla cracking the code to full driverless autonomy, which presents a significant technological and regulatory challenge.

“All in all, we expect clarity from Tesla about any strategy changes. If Robotaxi is accelerated without changing the focus or timeline for the Model 2, it could be seen as a positive signal of Tesla's confidence in its autonomous technology and potentially add value.” However, if the Model 2 is pushed out or canceled, We would view this as a complete change to our thesis as we are concerned about Tesla's new execution risk profile, see significant downside risk to its 2026+ earnings estimates and believe the stock would have to undergo a potentially painful change in ownership base, with investors would focus on Tesla's dominance in EV volume and cost advantage, potentially throwing in the towel and eventually being replaced by AI/tech investors with significantly longer time horizons.