The brokerage downgraded Tesla Motors Inc (NASDAQ: TSLA) to “neutral” from “buy” and cut its price target to $185 from $240.
The analysts said any delay in the timeline for the launch of the electric carmaker’s much-hypedModel 3 would hurt shares. They also cited Tesla’s deal to buy SolarCity Corp (NASDAQ: SCTY) as a concern.
“Combination of Tesla and SolarCity – two high growth, high cash burn businesses, creates a higher risk entity,” the analysts wrote.
Tesla’s shares were down 2.65 percent at $202.93 in premarket trading on Thursday. READ MORE
Shorts will be all over this one today. Here’s a look at the daily chart:
