Tesla: HSBC still a seller, TP $143

(CercleFinance.com) - On Wednesday HSBC renewed its 'reduce' recommendation on and $143 target price for Tesla shares, underlining the many challenges currently facing the electric vehicle manufacturer.


While it notes that investor appetite has recently been rekindled by the promise of 'hands-off' autonomous driving (HUD) and the growth potential displayed by the group, these elements are mostly accompanied by risks, argues the broker.

In particular, HSBC is concerned about the time it will take Elon Musk's group to bring its various concepts to market, as well as the increasingly obvious slowdown in the growth of its deliveries.

The analyst says that he has reduced his earnings estimates for Tesla to take into account the greater than expected weakness in volumes, as well as its price cuts, which were higher than expected.


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