Someone shorted major volume[Happy]
Tesla Slapped With Reduce Rating at HSBC, With Timeline and Costs of Future Products a Concern
Add one more Wall Street bank to the short list of research shops calling for Tesla stock to fall from its current level.HSBC analyst Michael Tyndall initiated coverage of Tesla on Thursday with a Reduce rating and $146 price target, implying a 33% drop in Tesla’s stock price. In response, Tesla shares fell 3% in early trade, and are now down 17% in the past month.Tyndall praised Tesla as an innovator in the space, one unburdened by legacy costs holding down its expansion in the EV sector, which Tyndall wrote is definitely a growth sector. But while its reputation as an innovator is warranted, more than half of HSBC’s model for future cash flows is based on initiatives that likely won’t see profits until the end of the decade.Finally, Tyndall says Tesla CEO Elon Musk is a “risk” for the company, but not because of his controversial comments or non-Tesla pursuits such as running SpaceX and X.com .
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