Tesla shares got a rating downgrade from Jefferies analyst, on doubts about the electric carmaker’s dominance in the electric-vehicle space.
Jefferies analysts downgraded the shares to hold from buy. But they increased their price target on the stock to $650 from $500.
"We don't believe Tesla can dominate autos given industry structure and politics, but multiple challenges to the auto business model (EVs, batteries, software, autonomy, design-to-manufacture and direct selling) ensure a durable competitive edge, with a 'messianic' brand reaching far beyond autos," Jefferies analyst Philippe Houchois said.