- Tesla (NASDAQ:TSLA) is reiterated with a Sell rating and a $160 price target at UBS, which sees challenges in integrating SolarCity (SCTY), ramping up auto production and developing the upcoming Model 3.
- UBS considers the SCTY deal an "an unneeded distraction at a time when Tesla has many challenging targets ahead," including plans to start delivering the Model 3 within a year or so and to hike auto production to 500K deliveries per year, as it works to complete the construction of a massive battery plant in Nevada.
- As a side note, the firm thinks competition from TSLA bodes poorly for Sunrun (NASDAQ:RUN).
- Baird analysts are more optimistic, seeing potential long-term benefits as TSLA has identified growth opportunities (solar roof/complete energy systems) and SCTY is shifting toward cash sales and to become less reliant on capital markets; the firm rates TSLA at Outperform.