** Shares of Tesla Inc down 2.3% at $151.94 in premarket trading
** Deutsche Bank downgrades Tesla Inc to "hold" from "buy" on potential Model 2 production push out to 2025 and strategic pivot to autonomous vehicles
** Says production delay of long-promised inexpensive car Model 2 will create risks to earnings and make its future tied to cracking the code on full driverless autonomy
** Warns stock will need to undergo potentially "painful" transition, with AI/tech investors replacing investors focused on co's EV volume and cost advantage
** Brokerage pushes out start of volume deliveries for Model 2 to 2027 with 80,000 units for that year; cuts 2027 EPS estimate to $2.40 from $4.25
** Earlier in April, Reuters reported TSLA has canceled Model 2 and will continue to develop self-driving robotaxis on the same small-vehicle platform
** Deutsche Bank slashes price target on TSLA to $123 from $189
** Of 50 analysts covering the stock, 16 rate "buy" or higher, 23 "hold" and 11 "sell" or lower; their median PT is $175 - LSEG
** Up to last close, TSLA down ~37% YTD
(Reporting by Roshan Abraham)
((Roshan.Abraham@thomsonreuters.com))
Comments