Analysts at Evercore lower their price target on Tesla (TSLA)

NASDAQ: TSLA | Tesla, Inc. News, Ratings, and Charts

TSLA – ‘The longer questions around execution and growth persist, the more difficult the valuation is to defend,’ Evercore says.

Tesla Inc. stock trades at a “huge” valuation premium compared with auto makers,’ but analysts say that inflated worth is getting harder to defend.

Analysts at Evercore ISI on Wednesday lowered their price target on Tesla stock to $200 from $240, a 13% downside over Wednesday’s prices.

Tesla’s TSLA, -0.28%   enterprise value hovers around $53 billion, which compares with Volkswagen AG’s VOW, +0.40%  $36 billion and BMW AG’s BMW, +3.12% $15 billion, the analysts said.

“The only thing that can justify such valuations is supernatural growth and best in class execution. Both are in question right now,” the analysts said.

“Tesla is a car company. It needs and burns cash like a car company. The longer questions around execution and growth persist, the more difficult the valuation is to defend,” said the analysts, led by Arndt Ellinghorst.

Evercore modeled for 2019 deliveries of around 343,000 vehicles, compared with their prior estimate of 368,000 vehicles and consensus of around 364,000 vehicles. Tesla has guided for deliveries between 360,000 and 400,000 for the year.

“We are relatively sanguine around near-term demand for Model 3, but given continued and persistent delays around battery production, (Tesla) will have to prove their ability to dramatically scale production across multiple models to reach their lofty aspirations (and Q2 guidance).
they said.

Moreover, the analysts said they expect Model 3 sales volumes to peak in 2020 after three years in the market and with potential “cannibalization” from the Model Y, the subcompact SUV Tesla plans to launch in 2021.

Tesla shares have lost 21% in the past 12 months, and 31% so far this year. That contrasts with gains of more than 5% and 14% for the S&P 500 indexSPX, +0.58%  in the same time periods.


Tesla Inc. shares were unchanged in after-hours trading Wednesday. Year-to-date, TSLA has declined -30.30%, versus a 14.56% rise in the benchmark S&P 500 index during the same period.

TSLA currently has a StockNews.com POWR Rating of D (Sell), and is ranked #18 of 25 stocks in the Auto & Vehicle Manufacturers category.


This article is brought to you courtesy of Analysts at Evercore lower their price target on Tesla (TSLA).

9 "Must Own" Growth Stocks For 2019

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!

Top Stories on StockNews.com

NASDAQ: ICFI | ICF International, Inc. News, Ratings, and Charts

Best & Worst Performing Stock Industries for May 20, 2019

Led by ticker ICFI, "Outsourcing - Management Services" was our best performing stock industry of the day, with a 1.69% gain.
NASDAQ: DFRG | Del Frisco's Restaurant Group, Inc. News, Ratings, and Charts

Best & Worst Performing Small Cap Stocks for May 20, 2019

DFRG leads the way today as the best performing small cap stock, closing up 31.16%.
NYSE: SMI | Semiconductor  Manufacturing International Corporation ADR News, Ratings, and Charts

Best & Worst Performing Mid Cap Stocks for May 20, 2019

SMI leads the way today as the best performing mid cap stock, closing up 8.18%.
NYSE: HDB | HDFC Bank Limited Common Stock News, Ratings, and Charts

Best & Worst Performing Mega Cap Stocks for May 20, 2019

HDB leads the way today as the best performing mega cap stock, closing up 5.97%.
NYSE: S | Sprint Corporation Common Stock News, Ratings, and Charts

Best & Worst Performing Large Cap Stocks for May 20, 2019

S leads the way today as the best performing large cap stock, closing up 18.77%.

Read More Stories


More Tesla, Inc. (TSLA) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All TSLA News


Page generated in 1.2704 seconds.