Tesla is downgraded at Berenberg with the rally expected to cool off
Justin Sullivan

Tesla (NASDAQ:TSLA) slipped in early trading on Wednesday after Berenberg turned cautious on the stock. The firm cuts its rating to Hold from Buy on its view the recent rally now has the share price reflecting misplaced fears over an electric vehicle price war.
The +70% year-to-date rally in Tesla' (TSLA) share price has pushed Berenberg to the sidelines for now, although the long-term view is still bullish.
âTactical price changes reflect cost-leadership strategy: Teslaâs new plants offer multi-year opportunity in capital and labour efficiency," noted analyst Adrian Yanoshik
Yanoshik and team still think Tesla can take market share at a gross margin of 25% with credits excluded, but in the near term the price cuts are seen coming at a cost to near-term margins
Berenberg set a price target of $210 on Tesla (TSLA) vs. the 52-week trading range of $101.81 to $384.29. Shares of TSLA were down 1.05% to $186.05 at 6:40 a.m. on Wednesday.
Read the latest breakdowns on Tesla from Seeking Alpha contributors including both bull and bear arguments.