Bank of America downgrades Tesla stock, raises price target saying 'execution risk is high'
It's been a tough Tuesday, so far, for Tesla .In a note to clients, Bank of America analyst John Murphy downgraded Tesla to Neutral from Buy, claiming that most of the EV maker's upside has been recognized since the firm upgraded shares back in April of last year. Since then, Tesla shares are up over 60%, though most of that run-up has come after President Trump’s election win in November.Tesla shares were down 4% in late trading.Murphy, though, boosted his price target to $490 from $400, but with some caveats.“While this still implies upside, execution risk is high and TSLA is trading at a level that captures much of our base case [long-term] potential from core autos, robotaxi, Optimus, and energy generation & storage,” Murphy wrote.From a core autos standpoint, Murphy sees Tesla pushing its share of the auto market to 5% globally in the long term, making it a top 10 automaker. Tesla's upside: the ongoing trend toward electrification, Tesla’s lower cost structure compared to other au