Tesla (TSLA) PT Lowered to $220 at UBS

UBS analyst Colin Langan lowered the price target on Tesla (NASDAQ: TSLA) to $220.00 (from $230.00) while maintaining a Sell rating.

The analyst comments "Q3 was a big quarter for Tesla as results surpassed even our street-high estimates, but Q4 & 2019 will likely be disappointing as Model 3 pricing & production volume may fall short of expectations. In Q4, we forecast model mix deterioration will result in a ~40% q/q decline in earnings. Our Q4 EPS est. of $1.84 is ~18% below consensus. Recent comments regarding the expected "tiny" Q1 profit, though partially driven by EU delivery timing, broadly support our mix concerns. With +50% incremental margins on options, we see significant margin pressure as Model 3 pricing declines in 2019."

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