Tesla stock just tagged a fresh 3-month low of $190 after receiving an upgrade to ‘Hold’ from ‘Sell’ at Standpoint Research this morning. In a note released to investors, the firm stressed that while it can no longer leave its lowest rating attached to the automaker, it still sees the name as “overvalued and extremely risky”.
Tesla Motors, Inc. (TSLA) began trading this morning at $190.07, more than 6 points lower from the prior days close of $196.40. On an intraday basis the name has gotten as low as $190.01 and as high as $195.10. It’s worth noting that with markets sharply lower this morning following UK’s vote to leave the European Union, shares of a bunch of individual names are also selling off.
Tesla’s shares have declined 9.87% in the last 4 weeks and 13.77% in the past three months. Over the past 5 trading sessions the stock has lost nearly 10%. The recent decline is mostly connected to a growing skepticism on Wall Street following Tesla’s surprise $28 billion proposed acquisition of SolarCity (SCTY). Many argue that a merger between the two companies does not help Tesla stockholders. David Bechtel, one of three principals of Barrow Funds, went as far as calling the prospect of a tie-up between two companies which “are gobbling cash” as “downright frightening.”
TSLA is down 25.93% year-over-year, and 18.17% year-to-date.
The $28.55 billion market cap Palo Alto, CA-based company has a median consensus price target of $245.00, implying a rise of 29% from current levels. Since its 2010 initial public offering priced at $17 a share, the stock has risen more than 900%.