Deutsche Bank Resumes Tesla (TSLA) at Hold and Lowers Price Target to $215

Deutsche Bank resumed coverage on Tesla Motors (NASDAQ: TSLA) with a Hold rating and a price target of $215.00 (from $290.00). Analyst Rod Lache now sees Model 3 ramp to 450 thousand by 2020 vs. 650 thousand previously.

"We continue to believe that EV growth will surprise as costs converge with ICEs. And we believe that Tesla may be able to achieve an advantaged position as this occurs. That said, the company's expansion plans are complex and highly capital intensive. The importance of continued support from the investment community cannot be overstated (we anticipate a further $2.5bn cash burn (or $1.5bn adj. for lease borrowing) before Tesla turns cash flow positive). Missteps could tax the company's liquidity and/or Investor confidence," said Lache.

"We’ve incorporated additional conservatism into our assumptions for the Model 3 ramp (450k by 2020 vs. 650k previously). This change reduced our DCF derived 'Motors' target to $214 from $290. Including the additional shares, Tesla Motors is valued at $200. With SCTY we derive a target of $215," added the analyst.

For an analyst ratings summary and ratings history on Tesla Motors click here. For more ratings news on Tesla Motors click here.

Shares of Tesla Motors closed at $192.18 yesterday.

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