UPDATE: Wunderlich Initiates Hold, $30 Target on Tesla Motors

Wunderlich Securities initiates coverage of Tesla Motors, Inc. TSLA with a Hold rating and a price target of $30 per share as the company is in need of all momentum it can muster to leverage into a crowded market. On the company's big hurdles, Wunderlich comments: “TSLA is aiming to sell 20,000 cars per year at an ASP north of $50,000. The cars are all electric and would represent nearly 3% of the luxury car market. The company faces enormous capital costs. We project that TSLA will need to raise at least $400 million between loans and equity to survive through 2013, and it may be forced to raise capital before the end of 2012 depending on how quickly it can ramp the Model S.” Tesla closed down 2.58 percent at $31.76 per share on Monday.