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Tesla shares (TSLA) were downgraded on Tuesday after analysts at Morgan Stanley reduced their price target on the automaker's shares, citing lingering concerns about its ability to continue to generate sales momentum.
Tesla shares fell about 1.5% to settle at $ 286.81 after Adam Jonas, a Morgan Stanley analyst, reduced his share price target from $ 283 to $ 260 USD, "to reflect higher free cash flow consumption and a slightly more modest long-term volume trajectory".
In a note to customers, Jonas and his team said that although Tesla has taken "remarkable steps to reduce costs / prices and boost orders, they are seeing the company of electric vehicles and batteries" strike a full blow air pocket earlier than expected. "
Other key changes in their forecasts include a 23% reduction in first quarter deliveries to 48,000 units, and a reduction in average transaction prices from $ 1,000 to $ 2,000 per unit, primarily through through price reductions of the S and X models.
The team has revised its forecast loss for the first quarter from $ 32 million to $ 31.1 million.
The price reduction target came one day after CEO Elon Musk officially opposed the Securities and Exchange Commission (NFC) on the grounds that he had violated his previous rule. and was to be held in defiance of a dubious February tweet.
In filing a complaint with a federal court in New York, Musk asserted that the tweet of February 19 "was just repeating publicly disclosed information and reflected my pride in the success and success of the news. Tesla's future I did not believe that this contained, or reasonably contained, any material information for Tesla or its shareholders. "
03.14.19 | 8 pm PDT
– Tesla (@Tesla) March 10, 2019
Tesla plans to unveil its fourth production car, Model Y, on March 14.
The latest model will complement Musk 's personal ambition to name four different lines of vehicles that (almost) collectively spell the word "sexy": 3 – E – X – Y.
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