NEW YORK (TheStreet) -- Shares of Tesla Motors Inc. (TSLA) are higher by 0.4% to $278.50 in pre-market trading after the electric automaker had coverage initiated with an "outperform" rating and a $325 price target at FBN Securities.
This coverage initiation comes as U.S. auto companies Ford (F) and General Motors (GM) were downgraded to "cautious" from "in-line" at Morgan Stanley (MS) this morning, citing easy credit and leasing was pulling forward demand from the future.
Separately, Tesla may partner with Toyota Motor Corp. (TM) in the future as Tesla CEO Elon Musk said the two companies have no definitive plans, but envisions a larger project than their deal for the RAV4 electric vehicle, Bloomberg reports.
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, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and generally higher debt management risk."