Tesla (TSLA) Downgraded by RBC Capital

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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.”