Following Tesla's launch event for the Model Y, where the company introduced three vehicle variants it plans to start delivering in 2020-2021, Roth Capital analyst Craig Irwin sees base vehicle pricing of $39k-$60k as "too high to drive significant acceleration" to Tesla's order velocity. The analyst also believes the launch event was likely pulled forward to distract from datapoints suggesting weaker than expected Model 3 demand. Tesla must now deliver unit growth for the stock to work, he contends. Irwin reiterates a Neutral rating and a $270 price target on the shares.

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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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