Market Overview

Citi Grows Cautious On Tesla Ahead Of Q1 Update

Share:
Citi Grows Cautious On Tesla Ahead Of Q1 Update

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
Aug 2020CitigroupMaintainsSell
Jul 2020Morgan StanleyMaintainsUnderweight
Jul 2020BernsteinDowngradesMarket PerformUnderperform

View More Analyst Ratings for TSLA
View the Latest Analyst Ratings

 

Related Articles (TSLA)

View Comments and Join the Discussion!

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

Latest Ratings

StockFirmActionPT
FVRRNeedhamMaintains155.0
GDOTCanaccord GenuityMaintains56.0
SPRCanaccord GenuityMaintains20.0
KTOSCanaccord GenuityMaintains22.0
IPGPCanaccord GenuityMaintains174.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com