UBS analysts lowered their price target on Tesla stock, and also slashed their earnings forecast for the company.
From $160, UBS reduced its price target on Tesla to $200. Analyst Colin Langan indicated that they are expecting the electric carmaker's losses in the second half of the year to widen, as they feel that deliveries might decline and Tesla’s product pricing would weigh on margins.
UBS predicts a second-quarter loss of 78 cents per share, compared to a prior forecast of 49 cents loss. The analysts at the bank also lowered their earnings per share outlook through 2019 until 2023.
Langan is concerned that the $2,400 average estimated Autopilot price cut would hurt Tesla’s margins. There will be a profit decline per car and 70% of buyers chose the autopilot option, according to UBS estimates.