Argus Downgrades Tesla (TSLA) to Hold

Argus analyst Bill Selesky downgraded Tesla (NASDAQ: TSLA) from Buy to Hold.

The analyst comments "We are lowering our rating on Tesla Inc. (NGS: TSLA) to HOLD from BUY as we expect the coronavirus pandemic to have a negative impact on vehicle deliveries. Prior to the outbreak, we had expected fairly robust deliveries from Tesla in 2020, as consumers continued to flock to the Model S, Model X, and more recently, the Model 3 - which accounted for more than 80% of 4Q19 production. In addition, despite past production delays, parts shortages, labor cost overruns, and other difficulties, we had expected Tesla to benefit from its dominant position in the electric vehicle industry and to improve performance in 2020 and subsequent years. We still think that Tesla has strong long-term prospects. However, in the near term, we believe that consumers will focus on basic concerns (food, safety, employment, etc.) and expect consumer confidence and spending to take a major hit as consumers defer large discretionary purchases. Our 2020 delivery forecast for Tesla is now 409,000 vehicles, down 19% from our original forecast."

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Shares of Tesla closed at $465.20 yesterday.

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