NEW YORK (TheStreet) -- Tesla (TSLA) has been initiated with a "neutral" rating with a $230 price target, UBS said Wednesday. The firm said lowering battery and variable components costs are critical to long-term success.
"Disruption in autos will likely play out over decades rather than years given the high fixed costs," analysts wrote in a note. "We estimate TSLA is already pricing in 1m units within 10 years (which
would make TSLA the 4th largest luxury brand). As we see significant upside already
priced in & few near-term catalysts, we are initiating with a Neutral rating."
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Separately, TheStreet Ratings team rates TESLA MOTORS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TESLA MOTORS INC (TSLA) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."