Tesla Stock Shrugs Off Another Downgrade. A Few Reasons For That
Tesla stock was up in early trading Friday, despite another downgrade. There are a few good reasons for that.Shares of the electric vehicle maker were up 1.7% at $224 a share in premarket trading while S&P 500 and Dow Jones Industrial Average futures were up 0.8% and 0.6%, respectively.At $224 each, shares are still about $20, or 9%, below where they closed just before Tesla reported weaker-than-expected second-quarter numbers. Tesla stock dropped 12.3% after reporting earnings per share of 52 cents. Wall Street was looking for 61 cents, according to FactSet.The miss generated a few price target cuts and analyst downgrades. Tesla stock caught another downgrade on Friday. Phillip Securities analyst Jonathan Woo cut his rating to Sell from "Reduce." His price target went to $135 a share from $145.Most brokerages have ratings that reflect Buy, Sell, and Hold, but some have different tiers. "Sell" and "reduce," however, are very similar, which is one reason Tesla stock isn't reacting all t