Jefferies analyst Philippe Houchois has downgraded Tesla’s stock from “buy” to “hold” but raised the 12-month price target from $500 to $650, according to CNBC. The analyst cited “execution risk” the automaker faces in 2021 amid product launches and expansion drive.

  • Jefferies projects Tesla’s earnings to rise in 2021 with the rollout of 2 vehicles with a high commonality, but an acceleration of capacity and battery investment will increase execution risk.
  • Houchois notes that Tesla enjoys a “messianic” brand that goes beyond auto but doesn’t see the automaker dominating the industry given its size, structure, and politics.
  • Jefferies downgrade comes at a time when Tesla’s stock has soared almost 650% year-to-date and is due to be included in the S&P 500 index this month.

Tesla’s stock is currently declining. TSLA: NASDAQ is down 1.54% on premarket