Tesla share-price target lowered by UBS over China demand concern

Hits: 0

UBS on Tuesday cut its share price on Tesla to $660 from $730, citing “several negative” factors. Analyst Patrick Hummel said while their latest consumer survey of electric vehicles (EV) was “solid across the board for Tesla, momentum in the quarters ahead is more likely in favor of competitors with a busier launch pipeline.” China stood out as a worry for Hummel, who rates Tesla at neutral. “Our key concern shorter-term is that Tesla's demand momentum in China is slowing, and our checks on the ground suggest that BEVs (battery electric vehicles) from domestic brands are gaining further ground vs. Tesla, which may trigger additional pricing action by Tesla and consequently lower gross margins,” he told clients in a note. The analyst said delays to the Model Y launch in Europe, Full Self-Driving (FSD) rollout and the next-generation 4680 battery in Fremont will also weigh on sentiment. To get to a better share performance, Tesla needs “new hard evidence” about its lead on the side of software/FSD. Shares of Tesla slipped 0.5% in premarket trading and are down 2.4% year to date. Also in the EV space, UBS lifted its price target on Ford F, +0.33% to $16 from $13, and GM GM, +0.32% to $79 from $75. Those companies are rated neutral and buy, respectively.

Share:

Author: admin

AffiliateLeakz - Affiliate Marketing Secrets Exposed