Tesla downgraded to Neutral at Wedbush on 'loss of confidence in story'
As previously reported, Wedbush analyst Daniel Ives downgraded Tesla to Neutral from Outperform as the demand story is quickly changing and the company has "unfortunately not adjusted to an evolving EV landscape." The analyst views this quarter as "one of top debacles" he has ever seen while "Musk & Co. in an episode out of the Twilight Zone act as if demand and profitability will magically return to the Tesla story." Ultimately, Ives believes the company's guidance is aggressive and management/board is not taking aggressive enough cost cutting actions and shutting down future endeavors to preserve capital and give a sustained path to profitability for the Street. The analyst also lowered his price target on the shares to $275 from $365 to reflect his reduced numbers for the coming years and his loss of confidence in the story.