Chinese investment bank CLSA downgraded Tesla Motors today from an “outperform” to an “underperform” rating.
Tesla is expected to launch its Model X (pictured) crossover later this year based on the same platform as the Model S luxury sedan, but CLSA said today that it believes Model X margins “will be more dilutive than previously thought.” Tesla finished 2014 with 31,655 deliveries, falling short of the 33,000 sales it expected to secure by that time.
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CLSA lowered its price target for Tesla ($TSLA) from $275 to $220 per share. Last Thursday, CEO Elon Musk announced an over-the-air software update for the Model S that will add a trip planning application designed to warn drivers before they travel out of charging range.
Shares of the company were trading at $198.27 when the NYSE opened this morning down from $203.28 on Thursday, March 19 when Musk made the announcement. Shares in the company fell when the market opened this morning. CLSA said it believes share prices “could continue to underperform this year, as investors debate Tesla’s demand and earnings trajectory.”
French bank Credit Agricole also downgraded Tesla today from an “outperform” to an “underperform” rating. So far, Tesla is struggling to shore up sales in China.
[Source: Seeking Alpha]
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