Posted on 02/03/2016 9:33:06 AM PST by Signalman
Tesla (TSLA) stock is down more than 25% so far this year. It hit its lowest level since February 2014 on Wednesday.
Wall Street has grown increasingly skeptical about the company in recent weeks.
Adam Hull, an analyst with European investment bank Berenberg, initiated coverage on Tesla Wednesday with a sell rating.
Pacific Crest analyst Brad Erickson said in a report Tuesday that investors should "avoid" Tesla stock. He cited concerns about sluggish demand for the company's new Model X crossover.
And even longtime Tesla bull Adam Jonas of Morgan Stanley, is suddenly feeling a little less optimistic about the electric car company. Jonas cut his price target from $450 a share to $333 on Monday.
That's still more than 80% higher than Tesla's current stock price. But Jonas conceded that Tesla could be hurt by the continued plunge in oil prices as well as increased competition in the race to create a autonomous, or self-driving, car.
As long as oil prices remain low, average consumers (as opposed to the wealthy who can afford to buy a Model S or Model X and presumably aren't checking gas prices daily) may not feel compelled to switch to an electric car.
(Excerpt) Read more at money.cnn.com ...
Tesla buyers don't care. They don't buy the car because it's energy efficient. They buy it because they're FU-rich, and it's wicked cool!
Tesla buyers are not Prius buyers!
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