Tesla shares falls to two-and-a-half year low after target price cut
By Caoimhe Toman
Date: Tuesday 21 May 2019
(Sharecast News) - Tesla shares fell Monday after an analyst Wedbush analyst Dan Ives cut the price target on the stock to $230 from $275.
In a note sent to clients on Sunday, the Wedbush analyst blamed the cut on a list of challenges that Tesla was facing.
"We continue to have major concerns around the trajectory of Tesla's growth prospects and underlying demand on Model 3 in the US over the coming quarters," he said.
"With a code red situation at Tesla, Musk & Co. are expanding into insurance, robotaxis, and other sci-fi projects/endeavors when the company instead should be laser focused on shoring up core demand for Model 3 and simplifying its business model and expense structure."
Tesla delivered just 63,000 cars in Q1 but expects to deliver 90,000 to 100,000 cars in Q2, and 360,000 to 400,000 in all of 2019. Ives also said reaching the annual target would be a "Herculean task"
The analyst added that a Business Insider report covering a leaked email from Musk to employees revealing that he had urged them to be cost-conscious with company expenses "does not inspire confidence" in Tesla.
On the back of the target price cut, Tesla shares fell by as much as 7.5% to $195.25 Monday to reach their lowest level since December 2016.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN