Tesla declines after bank downgrades shares from buy
Tesla Motors Inc. fell the most in almost five months after Deutsche Bank AG reduced its buy recommendation on the stock, saying the electric-car maker’s share price matches most of its growth prospects.
“We’ve been bullish on Tesla’s prospects, based on the company’s electric vehicle opportunity,” Rod Lache, a Deutsche Bank analyst, wrote in a report Tuesday. “And we believe Tesla could become a dominant player. But at this point, Tesla’s shares appear to already reflect this opportunity.”
Tesla also has potential to grow in its stationary battery-storage business, a market that is “in its infancy, making it very difficult to forecast how large this will be,” Lache wrote. The Tesla rating was cut to hold, even as the price target was increased to $280 from $245.
The shares slid 5.2 percent to $265.41 at 1:50 p.m. in New York after dropping 6.8 percent, the most intraday since Feb. 12. The Palo Alto, California-based company’s stock climbed 26 percent this year through Monday.