Tesla (TSLA) Is A Victim Of Its Own Success - JPMorgan

JPMorgan analyst, Ryan Brinkman, reiterated his Underweight rating on shares of Tesla (NASDAQ: TSLA) and cut his price target to $220 from $225 after the company announced that 4Q18 deliveries tracked 90,700 vehicles, softer than consensus of 91,046.

The analyst stated "vehicles manufactured by other automakers further behind the electrification curve continue to be eligible for the full credit, putting Tesla and GM at a comparative disadvantage at this stage — a consequence of their earlier success. The perceived need on Tesla’s part to lower prices suggests to us potentially softer underlying demand, and carries negative implications for the ability to earn the firm’s targeted strong 25% gross margin on the already lower priced Model 3, which has been a key source of our conservatism".

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

Shares of Tesla closed at $304.57 yesterday.

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