Tesla Motors (TSLA) Target Cut to $70 at BofA/Merrill Lynch Following Weak Q4; Much More Downside Ahead

Long-time Tesla Motors (NASDAQ: TSLA) bear John Lovallo of BofA/Merrill Lynch took a victory lap today following results from the EV maker after the close. He also cut estimates and his price target to $70.00 (from $75.00) while reiterating an Underperform rating.

The analyst key takeaways from the quarter were: 1) 4Q deliveries, revenue, and EPS well below expectations, 2) Tesla burned $455mm of free cash flow in 4Q ($541 mm ex. reg. credits), 3) Operating expenses,capex, and cash burn all forecast higher, with little relief in sight, 4) It could prove challenging for bulls to maintain lofty estimates, POs, & Buy ratings, 5) Stock only down marginally in aftermarket trading, but there is likely much more ahead.

The firm cut FY 2015 EPS from $2.40 to $1.56, FY 2016 EPS from $3.00 to $2.10, FY 2017 EPS from $3.95 to $2.60.

For an analyst ratings summary and ratings history on Tesla Motors click here. For more ratings news on Tesla Motors click here.

Shares of Tesla Motors closed at $212.80 yesterday.

You May Also Be Interested In

• Take-Two Interactive (TTWO) PT Raised to $368 at BofA Securities
• Tesla Crash Into Texas Home Now Under Federal Safety Probe - WSJ
• Baird sees Tesla-SpaceX merger within 12 to 18 months