Wedbush has lowered its price target on Tesla (NASDAQ: TSLA) from $ 275 to $ 230 while once the ultra-bull Dan Ives sees even darker clouds on the horizon for the car manufacturer at neutral rating.
"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 2H19, an uphill climb like that of Kilimanjaro," warns Ives.
Ives and his team see a total of 360,000 to 370,000 deliveries in the best cases and a baseline scenario of $ 340,000 to $ 355,000.
"In addition, with a red code situation at Tesla, Musk & Co. is expanding its business to insurance, robotaxia and other science fiction projects / initiatives, while the company should instead focus on laser on the consolidation of the fundamental demand for model 3 and the simplification of its business model and the structure of the expenditures in our opinion with headwinds abound, "he continues.
Tesla shares are down 3.57% before sale at $ 203.60 after losing 7.58% on Friday. Tesla has not traded below $ 200 since the end of 2016.