Tesla shares fall after analyst downgrade
Brian Johnson at Barclays lowers his price target to $120 from $141, adding to the beating the stock has taken since October.
The stock was falling as Barclays' analyst Brian Johnson lowered his price target on the stock to $120 from $141.
Moreover, Johnson pointed out that a look back at other high profile investigations and recalls suggest that sales could fall 10-20%.
Tesla's stock has been taking a beating after there were three fires on its Model S sedan since October.
Traders also punished Tesla after the company missed analyst expectations on vehicle deliveries of the Model S in its Q3 earnings report.
CEO Elon Musk has repeatedly defended Tesla's record, saying the fires were not spontaneous but took place after collisions with foreign objects. The National Highway Traffic Administration has opened a probe in Tesla's battery fires.
The stock is well off its Sept. 30 closing high of $193.37. Musk has previously said he thinks the stock is overvalued.
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US markets were able to rally hard and largely trim the day's losses. Meanwhile, a bounce in crude oil could be in the offing.
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