Credit Suisse analyst Dan Galves said Tesla shares are "much cheaper" now than they were when they hit their all-time high in September 2014, noting that near-term risks for the auto business have been lowered substantially and he sees "substantially" more upside as possible for the stock. Galves expects Tesla to deliver 11,000-11,500 vehicles in Q2, topping the company's estimate for 10,000-11,000 deliveries, and believes the lower-end Model S70D will lead to an uptick in deliveries in the second half of the year. Galves keeps an Outperform rating on the stock and raised the firm's price target for Tesla to $325 from $290, adding that he thinks valuations as high as about $400 are possible over the next 12-18 months.

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Deutsche Bank analyst Emmanuel Rosner downgraded Tesla to Hold from Buy with a price target of $123, down from $189. The analyst cites the "high likelihood" of Model 2 push-out and the company's change of strategic priority to Robotaxi for the downgrade. Deutsche's Buy rating was predicated on Tesla's next-generation vehicle priced at $25,000 coming late next year, which would allow the company to reaccelerate volume, margins and free cash flow, and potentially come to dominate the Western electric vehicle market, the analyst tells investors in a research note. However, pushing out the Model 2 will create "significant" earnings and free cash flow pressure on 2026 and beyond estimates, and make the future of the company tied to Tesla "cracking the code on full driverless autonomy," which represents a "significant technological, regulatory and operational challenge," says Deutsche Bank. The firm views Tesla's shift to Robotaxi as "thesis-changing," and worries the stock will need to undergo a "potentially painful transition in ownership base," with investors previously focused on electric vehicle volumes and cost advantages potentially "throwing in the towel, and eventually replaced by AI/tech investors with considerably longer time horizon."

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Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here