Forecast came false

Tesla Motors share price will be less than $200
23 september 2014

Tesla Falls After JPMorgan Outlines Cautious Estimates

Tesla Motors Inc. (TSLA) fell to the lowest level in six weeks after a JPMorgan Chase & Co. analyst projected a share price of less than $200, suggesting fewer vehicle sales than are implied by battery-factory plans.

Shares fell 3.6 percent to $250.03 at the close in New York, the lowest price since Aug. 8. The stock has risen 66 percent this year, outpacing a 7.7 percent gain by the Russell 1000 Index.

The company led by Chief Executive Officer Elon Musk is targeting an annualized production rate of 100,000 premium electric cars by the end of 2015. Palo Alto, California-based Tesla may produce only 18,250 sedans and sport-utility vehicles in next year’s fourth quarter for a run-rate of 73,000, Ryan Brinkman, an auto-industry analyst with JPMorgan, said in an e-mail to clients.

While the automaker has indicated with its plan to build a massive battery factory that it aims to produce 500,000 vehicles a year, JPMorgan projected 303,500 cars assembled in 2020.

Tesla is building a factory near Reno, Nevada, to provide cheaper lithium-ion cells for its vehicles. The plant may cost as much as $5 billion, Tesla said. The company raised about $2.3 billion toward the plant in March.


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Tesla Motors share price will be less than $200

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