Cowen analysts slashed their price target on Tesla, and also lowered their estimates on first-quarter delivery of Model 3 cars.
Cowen’s latest price target for the electric car maker’s stock is $180, down from $200. The analysts now expect Tesla to deliver 47,500 Model 3s this quarter, compared to their previous forecast of 55,000.
Cowen analyst Jeffrey Osborne seems skeptical on the U.S. market for Tesla cars, and anticipates the demand to decline until Tesla introduces a planned $35,000 version of the Model 3 in the second quarter. The analyst also mentioned that Tesla’s product price changes and the resulting pressure on margins have been incorporated in Cowen’s latest price targets on Tesla stock.
According to Cowen’s analysis, most of Tesla's first-quarter deliveries (22,000) is expected to come from the U.S. Additionally, China would probably deliver 10,000, Norway would supply 5,300, and the rest of Europe (outside of Norway) would account for 5,850 deliveries, according to the Cowen analysts’ forecasts.