Market Overview

Citi Grows Cautious On Tesla Ahead Of Q1 Update

Share:
Citi Grows Cautious On Tesla Ahead Of Q1 Update
Related TSLA
Raymond James Bullish On Iridium As Satellite Maker Shifts From SpaceX To Sales
Benzinga's Bulls & Bears Of The Week: Delta Air, McDonald's, Netflix, Nokia, Tesla And More
Running Out Of Gas: The Direction Of The Auto Industry (Seeking Alpha)

Tesla Inc (NASDAQ: TSLA) will soon release its first-quarter production numbers, and analyst expectations span the bull-to-bear spectrum.

Here is one less-than-optimistic perspective.

The Rating

Citigroup analyst Itay Michaeli maintained a Neutral/High Risk rating on the stock without a price target.

The Thesis

Citi is already cautious of Tesla considering its enduring inability to post profits. Now, dubious demand for the firm’s catalytic product and Tesla’s insecure leadership in the autonomous vehicle space further weigh on the thesis.

Itay identifies near-term risk in the emergence of Model 3 competitors, which could weaken orders at both current and targeted average selling prices.

“Our analysis suggested a potential limited impact in competing Model 3 segments thus far,” Itay wrote in a Tuesday note. “While the analysis is rough and doesn’t cover every scenario, the results are sufficient enough to prompt us to open 90-day downside catalyst watch on Tesla shares.”

Price Action

Tesla shares were trending down Tuesday and, at time of publication, traded 2.3 percent below the open at a rate of $297.21.

Related Links:

KeyBanc: The Tesla Model 3 Is Fast And Elegant, But Maybe Too Simple

Fatalities Will Decline With Autonomous Vehicles, Gene Munster Says After Uber Incident

Latest Ratings for TSLA

DateFirmActionFromTo
Jan 2019RBC CapitalMaintainsSector PerformSector Perform
Dec 2018WedbushInitiates Coverage OnOutperform
Dec 2018BairdReiteratesOutperform

View More Analyst Ratings for TSLA
View the Latest Analyst Ratings

Posted-In: Citi Citigroup Itay Michaeli Model 3Analyst Color Top Stories Analyst Ratings Best of Benzinga

 

Related Articles (TSLA)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
SHWKeyBancMaintains450.0
ACNCitigroupUpgrades169.0
CGBDJP MorganUpgrades15.5
NLYJP MorganUpgrades10.5
NTNXMorgan StanleyUpgrades58.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

BofA Highlights Lululemon's Menswear Business, Store Flexibility Ahead of Q4 Print

Think Twice Before Using Your 529 For Pre-College Education