Deutsche Bank will be on Thursday$Tesla (TSLA.US)$The rating was downgraded from “buy” to “hold,” and the target price was lowered from $189 to $123. The bank pointed out that the release of the cheap car Model 2 is likely to be delayed, and that the company has switched its strategic focus to the robot taxi business, which is considered risky to manage and will take years.

Deutsche Bank analyst Emmanuel Rosner warned: “The delay of Model 2 may cause Tesla's consumer product line to have no new cars in the foreseeable future. This will put continued downward pressure on Tesla's sales and pricing for many years to come, and earnings expectations after 2026 will need to be lowered.”

Rosner and his team believe that Tesla's strategic shift is a shift in theme. He fears that Tesla's equity base will experience a potentially painful shift, from investors focusing on Tesla's size and automotive gross margin advantage to investors focusing on long-term AI/ technology growth potential.

Rosner added in the short-term outlook: “Without any new cars, we think Tesla may face more growth resistance as competition from China and other original equipment manufacturers intensifies, and the company may not be able to handle limited free cash flow.”

Deutsche Bank also lowered expectations for Tesla deliveries, revenue, and earnings per share.

Tesla will announce its first-quarter earnings report on April 23, EST. The current options trading suggests that Tesla's stock price will fluctuate up to 10% after the earnings report is released.

As of press release, Tesla fell 2.35% to $151.8 in the premarket. The stock is down 37% since this year.

Editor/Jeffrey