"HSBC Downgrades Tesla, Citing Future Product Concerns and High Costs"
Originally Published 2 years ago — by Yahoo Finance
HSBC analyst Michael Tyndall has initiated coverage of Tesla with a Reduce rating and a $146 price target, citing concerns about the timeline and costs of future products. While Tyndall praised Tesla as an innovator in the EV sector, he believes that the market and valuation are not reflecting the longer timeline for profitability. HSBC views Tesla differently from conventional carmakers and acknowledges its potential, but questions the credibility of its growth aspirations. The main headwinds to Tesla's growth story are upcoming non-car products that are hard to model from a discounted cash flow perspective. Additionally, Tyndall sees Elon Musk as a "singleman" risk to the company.