Cars and Drivers
Analysts Voting With Their Feet After Tesla's Earnings
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Tesla Inc. (NASDAQ: TSLA) posted a much larger than expected net loss in the second quarter, and while that may be the biggest reason shares are getting pummeled Thursday morning, it’s not the only reason.
The company’s gross margins in its automotive business were a bit short of expectations, and the volume increase has been widely attributed to lower prices and what many analysts and investors see as a business that lives and dies with government subsidies. Turn the subsidies off and car buyers look again at fossil-fuel-powered cars for which subsidies are well-disguised and still in place.
The scoreboard for Tesla is decidedly negative Thursday, as five of 11 recent analyst calls show Sell ratings on the stock, and two more lowered their ratings following Wednesday’s announcement.
Here’s analyst reaction since late Wednesday:
Tesla’s stock traded down nearly 13% Thursday morning, at $230.70 in a 52-week range of $176.99 to $387.46. The consensus 12-month price target on the stock is $263.55, but these recent changes may not yet be priced in.
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