BUZZ-Tesla falls after Deutsche Bank downgrade on risks from robotaxi pivot, Model 2 delays

Reuters04-18

** 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))

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