Tesla shares look as if they are about to spontaneously combust in pre-market trading, set to plummet below $200 for the first time in three years, after Wedbush published a research report saying that the company faces a "Kilimanjaro-like uphill climb" to hit its profitability goals for the second half of the year, according to Bloomberg. In the Sunday report, analyst Dan Ives also slashed his price target from $275 to $230 and calling the company's current state of affairs a "code red situation".
Ives had previously been one of the most bullish analysts on the name, but now looks to be the latest sell-sider finally accepting a much needed dose of reality. In his note, he claimed that he has "major concerns around the trajectory of Tesla's growth prospects and underlying demand on Model 3 in the U.S. over the coming quarters."
Tesla shares were hit to start the week Monday morning, collapsing 4% in pre-market trading, meandering deep inside margin call territory, and setting up the company to test the key $200 level, the lowest price since December 2016.