TSLA stock
Shares of Tesla are poised for a 2% decline at the open as the rest of the market wrestles with results from financials (mixed bag there with Citi +3% and JPM -1.2%). Spoos are up 3 points.
The decline in TSLA follows an 8% drop yesterday that came on the heels of a sensational 11-day rally.
The sell target from UBS is $197 as they say the stock ran too much and too soon:
Increasingly difficult to justify valuation
We are downgrading TSLA from Neutral to Sell. TSLA is more than just an auto company, and there are some positive developments (e.g. Energy, FSD) that add additional support. This is increasingly important as expectations for the Auto business deteriorate. TSLA has always had a premium attached to it for other, future, growth opportunities, but that premium is difficult to justify. This premium has widened as noted we believe, on an FSD narrative. Although we differentiate between businesses of substantial value,…
