Shares of You’re here (NASDAQ:TSLA) the stock closed more than 4% higher today despite three price target cuts by investment firms this week. The most recent cut comes from Credit Suisse analyst Dan Levy, who lowered his price target from $1,125 to $1,000 per share.

The analyst also lowered his Q2 EPS estimate to $1.10 from $2.06, representing a reduction of 47%. On top of that, Levy has a second-quarter delivery estimate of 242,000 electric vehicles (EVs). This estimate is lower than the general consensus on the sale side of around 280,000 vehicles. Meanwhile, analyst also expects EV company to write down Bitcoin (BTC-USD) assets.

Electrek reports that Tesla has lost over $500 million due to Bitcoin’s decline. In 2021, Tesla announced that it purchased $1.5 billion worth of cryptocurrency. As of June 15, the company’s Bitcoin investment was worth $905 million.

On the bright side, Tesla’s Bitcoin is worth “only 10% of its cash and 0.1% of its total market capitalization”. Yet a loss of nearly $600 million is not ideal for any business.

TSLA stock: Credit Suisse lowers price target to $1,000

Levy expects lockdowns in China will also hurt Tesla’s second-quarter deliveries. However, the analyst remains bullish on TSLA stock, saying “long-term fundamentals are intact” and “widening supply constraints will likely extend Tesla’s lead over other OEMs in the vehicle race.” electrical”. The analyst also believes Tesla’s strong fundamentals should outweigh any near-term challenges, such as inflation, semiconductor shortages and production delays.

Meanwhile, Mizuho analyst Vijay Rakesh also lowered his TSLA price target today to $1,150 from $1,300. The analyst also lowered its second-quarter delivery estimate from 296,000 vehicles to 232,000. This was due to Covid-19 lockdowns in China. Rakesh said his company’s Shanghai factory produces more than 50% of production. Looking ahead, however, the analyst continues to see strong demand despite higher prices and lead times.

Finally, Morgan Stanley analyst Adam Jonas lowered his price target to $1,200 from $1,300. This price target reduction was “almost entirely due to the increase in WACC from 8.5% to 9%.” Jonas also has a Q2 delivery estimate of 270,000 vehicles, down from the previous estimate of 316,000. For the full year, he expects 1.39 million deliveries.

The WACC, or weighted average cost of capital, is strongly influenced by the federal interest rate. When rates increase and all other factors are held constant, the WACC will also increase. Subsequently, a higher WACC implies a higher discount rate, which will reduce the present value of future cash flows.

At the date of publication, Eddie Pan did not hold (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.