Shares of Tesla fell from record highs on Tuesday after an analyst warned that the electric car maker may take longer than expected to become profitable.
Jefferies analyst Philippe Houchois launched coverage of Tesla with an ‘underperform’ rating, helping send shares of the company headed by entrepreneur billionaire Elon Musk down 2.17 percent to $376.74.
It comes just a day after the firm closed at a record high.
Shares of Tesla fell from record highs on Tuesday after an analyst warned that the electric car maker may take longer than expected to become profitable
‘Achievements to-date and vision are impressive, but we don’t think Tesla’s vertically integrated business model can be scaled up as profitably and quickly as consensus thinks and valuation multiples imply,’ Houchois warned in a research note.
Houchois’ $280 price target was well below the median analyst price target of $337.50, according to Thomson Reuters data.
Musk is counting on the recently launched Model 3, Tesla’s least pricey car, to make the Palo Alto, California company profitable and establish it as the leading electric carmaker ahead of BMW , General Motors and other long-established players.
Wall Street’s confidence in Musk has sent Tesla’s stock up 83 percent over the past year to record highs.
Skeptics believe Tesla’s aggressive production targets are unrealistic, that Musk is burning through cash too quickly and that the company’s electric cars will be overtaken by larger automakers.
TESLA TO UNVEIL ALL-ELECTRIC SEMI-TRUCK
Elon Musk has teased the trucking industry with the prospect of a battery-powered heavy-duty vehicle.
Tesla’s plans for new electric vehicles, including a commercial truck called the Tesla Semi, were announced last year.
In September, Musk tweeted: ‘Tesla Semi truck unveil & test ride tentatively scheduled for Oct 26th in Hawthorne.
‘Worth seeing this beast in person. It’s unreal.’
The firm hopes that such a vehicle could compete with conventional diesels, which can travel up to 1,000 miles on a single tank of fuel.
Tesla’s electric big-rig truck could have a working range of 200 to 300 miles to compete with more conventional diesels.
Tesla hopes that such its vehicle could compete with conventional diesels, which can travel up to 1,000 miles on a single tank of fuel
Eight analysts recommend buying Tesla’s stock, while another eight recommend selling, and eight others have neutral ratings, according to Thomson Reuters data.
That makes Tesla one of the 10 most poorly-rated stocks in the Nasdaq 100 index.
Tesla is gearing up to reveal an electric semi-truck next month, which the firm hopes could compete with conventional diesels, which can travel up to 1,000 miles on a single tank of fuel.
And, the firm recently revealed it will be expanding its Supercharger stations to city centers and downtown areas, starting with Chicago and Boston.
Jefferies analyst Philippe Houchois launched coverage of Tesla with an ‘underperform’ rating helping send shares of the company headed by entrepreneur billionaire Elon Musk down 2.17 percent to $376.74
This would rely on new mini Superchargers designed specifically for cities, to support high usage and accommodate for space limitations.
The firm also appears to be working on new ways to make the charging process more efficient during long road trips.
Tesla filed a patent in May for a batter-swapping system that can lift up a vehicle and change out its battery pack for a new one in just 15 minutes.
According to the patent, the rig could even be installed on a trailer with ramps built on either side, allowing cars to drive right in and out.