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Wedbush published a note on Tesla (TSLA – Get Report), in which it lowered the company's price target from $ 275 to $ 230.
Analysts explored the company's profitability path, its new chief financial officer, and Tesla's many projects.
"We continue to have serious concerns about the trajectory of Tesla's growth prospects and the underlying demand for Model 3 in the United States in the coming quarters, which will further warm Musk & Tesla to control spending at an accelerated pace with profitability targets "in [the second half of 2019], a climb of Kilimanjaro type, in our opinion, "wrote Wedbush.
The note also named Tesla's new CFO, Zachary Kirkhorn.
"With an inexperienced CFO at the helm, micromanagement of spending is now a priority (for example, emails / memos from Musk's employees last week), and we ask that the problem be knocked out by Fremont, we continue to be concerned about Tesla's "Perfect Storm" capacity related to weak demand and profitability, which will weigh on stocks until Musk & Co. proves the opposite in terms of solid results for the next quarters, "wrote Wedbush analysts.
Jim Cramer says investors should keep in mind that Elon Musk is not the title, so do not just invest for the CEO.
"[Tesla investors] do not look at fundamentals, fundamentals mean nothing to them. Now, what matters to them is that Elon Musk is a genius. Elon Musk is a genius, but he's not a stock. If it was a stock, you would be a buyer, but this is not the case. A person is not an action and people must recognize that you are buying a person, but a person does not have earnings per share. A person does not have a balance sheet. It's just a person. It's a business they should be thinking about, but they will not do it, "said Cramer.
Related. What is the next step for Tesla as a major investor in dumping?
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