Tesla Motors Inc (TSLA): S&P Gives It A Sell Rating

Tesla Motors Logo
Standard & Poor’s has initiated coverage of Tesla Motors Inc (NASDAQ:TSLA) with a “sell” rating.  S&P cited caution over Tesla’s stock price.  S&P set a 12-month target share price for Tesla at $150.  Tesla stock price is down $0.38 today (-0.21%) at $183.56.

“We are positive on Tesla’s fundamental growth story, but are concerned by its valuation,” stated S&P analyst Efraim Levy in a research note.

Today Barclays analyst Brian Johnson said that Tesla’s third quarter sales will likely top their forecast, but believes that $141 per share is “fair value.”

However, Wedbush Securities analyst Craig Irwin is optimistic about Tesla’s stock.  Wedbush raised the rating on Tesla from “neutral” to “outperform.”  Wedbush raised the target share price to $240 from $180 based on a proprietary survey that supports higher expectations for Tesla’s next generation of affordable electric cars, known as Gen III.

Elon Musk On Shorting Tesla
Last month, Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk said that shorting the stock is not a good idea.

“I think that we’ve got a really good story in the long term for Tesla.  Our valuation right now is… assuming a lot of good execution on our part in the future.  We’re going to do our best to work hard and make sure that investors are not disappointed.  I think we’ve got some very exciting products coming out.  I think, in the past I said it’s really crazy to short Tesla. Is it so crazy to short Tesla right now? I mean it’s not as crazy but I still think it’s probably not a good idea,” stated Musk in an interview.

[Source: Reuters]

This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at
Leave a Comment