Tesla shares were down after a UBS analyst downgraded it to “sell”, expecting disappointing growth from the company’s electric car and home battery segments.
Shares slid 4.7 per cent for Tesla, the electric car manufacturer that has attracted a cult following, and were down to $269.10.
UBS analyst Colin Langan wrote in a statement to investors that Tesla is expected to face challenges both in increased competition and rising costs:
We expect both storage and auto volume growth to disappoint.
Langan also commented that order numbers of around $800m on Tesla’s home batteries were “misleadingly” high:
This pace is misleading as customers did not put down deposits, so these are just solicitations of interest.
Tesla has also recently been downgraded by Deutsche Bank and Pacific Crest Securities.
Over the year, Tesla shares remain up 27 per cent.