Joseph Spak, RBC Capital analyst has downgraded Tesla to Underperform from Sector Perform. Price target of $245 down from $290.
- Analyst considers that the valuation reflects lofty expectations.
- He states: “The company seems to be more tactful with messaging which is a long-term positive but means downward pressure to growth expectations – which in our view are too high to justify current levels, let alone to add to positions.”
- Review of demand and potential capacity of supply is concerning.
- “Our view is that bulk of demand is at a lower price point that Tesla can’t access yet profitably.”