Expect rising interest rates to weigh on Tesla moving forward, Wells Fargo says.
"While IRA will help in 2023, the economy and interest rates likely will not, particularly in Europe where an energy crisis looms," Langan wrote.
Despite the target cut, Langan upped earnings per share estimates for Tesla, citing benefits from the Inflation Reduction Act and foreign exchange headwinds.
Wells Fargo also expects a strong dollar to weigh on the company's average selling price.
"We forecast a slight Q3 beat as the benefit of pricing will likely be offset by FX headwinds," Langan wrote.