Tesla price target, delivery estimates cut at RBC on concerns about 'very low' second-quarter demand - MarketWatch

RBC Capital Markets analyst Joseph Spak lowered his price target and delivery estimates for Tesla Inc. TSLA, -2.48% Monday, writing that he expects constrained demand in the second quarter, which may force the company to cut production. Spak now expects 364,600 deliveries for 2020 and 572,100 deliveries for 2021, down from his prior estimates of 524,200 and 618,000, respectively. He cut his price target to $380 from $530 while maintaining an underperform rating on the stock. "Ultimately, we see 1Q20 challenges given typical [end-of-quarter] push, very low 2Q20 demand given a weak auto market and lower mid-term growth as the consumer reels and Tesla's products are luxury," Spak wrote. "We believe this experience could dent the multiple investors will be willing to pay for the Tesla story." Tesla's stock is off 14% in premarket trading Monday. Tesla shares have lost 32% over the past month, as the S&P 500 SPX, +9.28% has dropped 20%.

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