Nomura/Instinet Downgrades Tesla Motors (TSLA) to Neutral, Says Equity is 'No Longer Investable'

Nomura/Instinet analyst Romit Shah downgraded Tesla Motors (NASDAQ: TSLA) from Buy to Neutral with a price target of $300.00 (from $400.00).

The analyst fears the CEO recent behavior will taint the company's brand which in terms of value appears to the most important.

Shah comments "We are worried that this behavior is tainting the Tesla brand, which in terms of value is most important. The only comparable to Tesla’s brand recognition is Apple, in our view. What Apple taught us is that, once brand recognition is established, consumer behavior can begin to deviate from traditional economics in ways that benefit the company immensely. With the launch of Model 3, we saw that consumers were willing to forego compelling alternatives despite extended wait times and a premium price point. That said, consumers are fickle and we suspect could become scared about buying a Tesla if they
believe the company might not be around long term."

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 $284.50 yesterday.

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