Why Jim Cramer Thinks Tesla's an Innovative Company

Here's what Jim Cramer thinks of Tesla.
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TheStreet's Tony Owusu reported on Tesla's most recent downgrade.

The company's growth story is in jeopardy, according to the latest RBC note on the electric vehicle maker.

The firm's analysts downgraded the stock to underperform from outperform, sending the stock down 1.8% to $293.60 in premarket trading Wednesday.

The firm also cut the company's price target to $245 from $290, saying that Tesla's growth expectations are too high.

"It's not that we don't believe Tesla (TSLA) - Get Report can grow over time, our model shows solid LT growth. But the current valuation already considers overly lofty expectations," analyst Joseph Spak wrote. "The company seems to be more tactful with messaging which is a long-term positive, but means downward pressure to growth expectations - which in our view are too high to justify current levels, let alone to add to positions."