Tesla price target cut to $812 by Canaccord
Analysts at Canaccord Genuity on Monday cut their price target on Tesla Inc. (TSLA) shares to $812, from $974, on disappointment that the electric-car maker has nixed the Model S Plaid Plus (http://www.marketwatch.com/story/tesla-cancels-plaid-plus-no-need-after-upgrade-to-regular-plaid-elon-musk-tweets-11623023231), which would be the sedan's top trim. Tesla last week launched top-of-the-line Model S Plaid (http://www.marketwatch.com/story/tesla-stock-holds-to-weekly-advance-after-plaid-model-s-2021-06-11) in an effort to breathe new life into the sales of the sedan, which has not changed much in its nearly 10-year existence. The "Plaid Plus" trim "was reportedly going to be the first to feature the new 4680 (battery) cell design. This signals to us the new cell format isn't ready for production just yet, and cell production capacity constraints for energy storage products like Powerwall remain," the Canaccord analysts said. "Coupling this with macro near-term uncertainty surrounding inflation and Fed policy causing a sector rotation out of growth and into value names, leads us to our PT reduction." The $812 target implies a 31% upside to Monday's stock price. Tesla shares have lost 12% this year, contrasting with gains around 13% for the S&P 500 index.
-Claudia Assis; 415-439-6400; AskNewswires@dowjones.com
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June 14, 2021 17:48 ET (21:48 GMT)
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