Close

UBS Downgrades Tesla Motors (TSLA) to Sell; Sees Storage and Auto Volume Falling Short

July 21, 2015 6:21 AM EDT
Get Alerts TSLA Hot Sheet
Price: $175.79 -2.25%

Rating Summary:
    23 Buy, 27 Hold, 13 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
Join SI Premium – FREE

UBS downgraded Tesla Motors (NASDAQ: TSLA) from Neutral to Sell with a price target of $210.00 (from $220.00), saying they expect both storage and auto volume growth to disappoint.

Analyst Colin Langan commented, "Even if we credit TSLA with reaching target margins, assume limited dilution despite capacity needs, & assume it trades at 25x PE in 10 years, the current price implies deliveries of >1.5m vehicles in 10 years plus full utilization of storage capacity; both are unlikely in our view. The stock has jumped +40% since the anticipation of the storage announcement; however, our analysis indicates that TSLA's current planned 15GWs of storage capacity may be larger than the market in 2020."

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 $282.26 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Analyst PT Change, Downgrades, Hot Downgrades

Related Entities

UBS, Tesla