Tesla Motors (TSLA) Holding Up Well Despite New 'Sell' Rating
Tweet
Share
E-mail
Get Alerts TSLA Hot Sheet
Price: $362.86 +5.14%
Rating Summary:
29 Buy, 26 Hold, 16 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
29 Buy, 26 Hold, 16 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
Tesla Motors, Inc. (Nasdaq: TSLA) is holding up well in the face of a nasty new 'SELL' rating. Share are currently down just 3 percent.
This morning, an analyst at Capstone Investments initiated coverage on the maker of the sexy electric cars with a Sell rating and $22 price target, which suggests 33 percent downside from yesterday's close.
Capstone analyst Carter Driscoll argues that the stock is priced to perfection, and has loads of risks.
Driscoll believes hybrid EVs (HEVs) and plug-in hybrid EVs will continue to take the lion's shares of green conscious automobile consumers, leaving Tesla in the lurch.
Tesla admittedly has a small target market in the luxury car segment and the company's upcoming Model S will face stiff competition from GM, Nissan and Toyota.
While the company's battery technology is good, it is not a stand alone business and competitors are quickly catching up, Driscoll argues.
The reception of Tesla's Model S is crucial and any delays will cause significant cash flow reductions.
"Investing in Tesla is a bet that the Model S will be on time and on budget and that customer adoption is robust and consistent. A lot of strong execution has to occur to justify the current valuation and management provides limited visibility," Driscoll states.
This morning, an analyst at Capstone Investments initiated coverage on the maker of the sexy electric cars with a Sell rating and $22 price target, which suggests 33 percent downside from yesterday's close.
Capstone analyst Carter Driscoll argues that the stock is priced to perfection, and has loads of risks.
Driscoll believes hybrid EVs (HEVs) and plug-in hybrid EVs will continue to take the lion's shares of green conscious automobile consumers, leaving Tesla in the lurch.
Tesla admittedly has a small target market in the luxury car segment and the company's upcoming Model S will face stiff competition from GM, Nissan and Toyota.
While the company's battery technology is good, it is not a stand alone business and competitors are quickly catching up, Driscoll argues.
The reception of Tesla's Model S is crucial and any delays will cause significant cash flow reductions.
"Investing in Tesla is a bet that the Model S will be on time and on budget and that customer adoption is robust and consistent. A lot of strong execution has to occur to justify the current valuation and management provides limited visibility," Driscoll states.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Tesla recalls nearly 3 million vehicles in China over safety issues
- Mizuho Reiterates Outperform Rating on Uber Inc. (UBER)
- Einride to deploy 500 Tesla Semis across North America for Amazon
Create E-mail Alert Related Categories
Insiders' Blog, New CoverageRelated Entities
Capstone Investments, TeslaSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
