Shares of Tesla Give Up Early Gains, Pulling Back from All-time Highs After “Underperform” Rating

Shares of Tesla slumped on Tuesday, depressed by a report that cites concerns over the company’s valuation and warned that the automaker based in Palo Alto, California may take longer than expected to become profitable.

Tesla’s shares tumbled by more than 2.2 percent to trade at $376.45 per share on Tuesday, pulling back from record highs on Tuesday after having closed at all-time high the day before. Jefferies analyst Philippe Houchois on Tuesday launched coverage of Tesla with a bearish underweight rating, setting his price target at $280, which is 27% below Monday’s record close of $385.

The analyst claimed that Tesla would report losses until 2020, while analysts expect the electric car maker to report a profit of $5.33 for 2019.

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