Rare downgrade for Tesla Motors

Tesla Motors (TSLA) is downgraded by Robert Baird to Neutral on a valuation call with the automaker's technology leadership fully priced in.

The investment firm sets a $187 price target on shares as it also cites "execution risk" as a factor.

TSLA -2.1% to $188.99

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Comments (19)
  • saguni60
    , contributor
    Comments (58) | Send Message
    "Fully Priced in?" How about fully priced in without discounting the cash flow or using 0% interest rate for the future cash flows? Its valued as if its more risk-free than even treasury bills. Wait, at the rate the Congress and administration are dealing with the budget issues and debt ceiling, maybe its less risky than US T-Bills. Maybe Wall Street should use TSLA stock price as the risk free variable in Black-Scholes instead of T-bill rates...
    2 Oct 2013, 07:44 AM Reply Like
  • David Pinsen
    , contributor
    Comments (1751) | Send Message
    I wonder how many videos of Tesla sedans engulfed in flames are priced in. Here's a way for TSLA shareholders to add some downside protection in the wake of the first video: http://seekingalpha.co...
    2 Oct 2013, 04:55 PM Reply Like
  • Fel-D-1
    , contributor
    Comments (56) | Send Message
    I like how a "downgrade" is 187. I think a real "downgrade" would be 87. It's still a bubble.
    2 Oct 2013, 08:27 AM Reply Like
  • Kenjisan
    , contributor
    Comments (49) | Send Message
    Price target of $187? It would've probably tapped 187 during the regular ups and downs for the day.
    2 Oct 2013, 08:34 AM Reply Like
  • pat1000
    , contributor
    Comments (496) | Send Message
    Baird should write for the comedy club-----
    2 Oct 2013, 09:48 AM Reply Like
  • SharkDude
    , contributor
    Comments (738) | Send Message
    RARE. OMG. Actually you mean it never should happen. Longs that hold here will find out how useless Wall Street is. The bid dogs will not downgrade until the stock price drops below 150 bucks. They have no foresight or incentive to ever downgrade until the price dictates it.
    2 Oct 2013, 10:20 AM Reply Like
  • Cassina Tarsia
    , contributor
    Comments (662) | Send Message
    Up ... down ... it is a minor downgrade ... Tesla still has a ways to go before it has finished with its run-up, I would think.
    2 Oct 2013, 12:05 PM Reply Like
  • surferbroadband
    , contributor
    Comments (4527) | Send Message
    Your right it is minor. Tesla also does have a long and that is real long way to go before it drops to a PE of 10.


    The people that buy even now will see massive gains all the way to 2020. That is because the automobile industry is going to have a massive upheaval. No different than the computer industry in the 80's and 90's. Mainframe computers are history.


    Gas here in Houston just dropped to $2.96/gallon. Unless gasoline get to $1.25/gallon and the "mainstream" auto industry makes vehicles that get 40mpg, then electric is cheaper and who has the best electric vehicles, safer, reliable, etc......Tesla.
    2 Oct 2013, 03:32 PM Reply Like
  • Tales From The Future
    , contributor
    Comments (7103) | Send Message
    I don't know if today's dip was because of Baird or the reported Model S on fire, maybe a combination of both:




    Depends on the outcome/report what caused the fire, maybe it was just a "normal" accident.


    Maybe the culprit was the usual "old-school" 12V auto battery (kind of ironic in an EV)
    2 Oct 2013, 02:28 PM Reply Like
  • speedofov
    , contributor
    Comments (91) | Send Message
    Merrill just raised its price target to $45 which shows what a wide divergence there is among analysts and investors.
    2 Oct 2013, 03:03 PM Reply Like
  • alext1379
    , contributor
    Comments (759) | Send Message
    Just as Goldman released a downgrade and then probably picked up Tesla when amateurs were bailing, you can bet traders who missed the initial run up after last earnings are buying up shares at a $15 discount today.
    2 Oct 2013, 03:10 PM Reply Like
  • vandeley
    , contributor
    Comments (126) | Send Message
    Yeah TSLA is now a huge bargain at just 15x Price to Sales and 35x book value.
    3 Oct 2013, 03:02 AM Reply Like
  • steamoil
    , contributor
    Comments (57) | Send Message
    just what the shorts want to hear.
    2 Oct 2013, 03:32 PM Reply Like
  • Clayton Rulli
    , contributor
    Comments (3356) | Send Message
    LOL 187.... nice number http://bit.ly/1brD45j
    2 Oct 2013, 03:38 PM Reply Like
  • flux8
    , contributor
    Comments (682) | Send Message
    I'm thinking the analysts don't know how to price Tesla, thus the seemingly random price targets.
    2 Oct 2013, 03:39 PM Reply Like
  • Tales From The Future
    , contributor
    Comments (7103) | Send Message
    Update on fire with statement from TSLA:


    2 Oct 2013, 03:56 PM Reply Like
  • Alfa164ls
    , contributor
    Comments (18) | Send Message
    to paraphrase JM Keynes
    Stocks can stay irrational longer than you can stay solvent.
    Also, I don't think MSFT or CSCO were available at under 100 times earnings in the initial stages of public ownership.
    Many may not want to pay the price but maybe you should just step aside.
    2 Oct 2013, 04:06 PM Reply Like
  • convoluted
    , contributor
    Comments (2392) | Send Message
    High Flight (or Ode to TSLA)


    Oh! I have slipped the surly bonds of Earth
    And danced the skies on laughter-silvered wings;
    Sunward I've climbed, and joined the tumbling mirth
    Of sun-split clouds, — and done a hundred things
    You have not dreamed of — wheeled and soared and swung
    High in the sunlit silence. Hov'ring there,
    I've chased the shouting wind along, and flung
    My eager craft through footless halls of air. . . .


    Up, up the long, delirious burning blue
    I've topped the wind-swept heights with easy grace
    Where never lark, or ever eagle flew —
    And, while with silent, lifting mind I've trod
    The high untrespassed sanctity of space,
    Put out my hand, and touched the face of God.


    — John Gillespie Magee, Jr
    2 Oct 2013, 04:53 PM Reply Like
  • IDK Much
    , contributor
    Comments (288) | Send Message
    This stock has been overvalued and still is. I don't understand how people pay so much for hype. Is a company with 1.3 billion in sales worth 25 billion? It grew sales 14 times yoy, I guess it will keep doing that until forever? Really?
    2 Oct 2013, 10:46 PM Reply Like
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