Tesla Hits 3-Month Low on Mercedes News, Negative Calls

(Bloomberg) -- It is not easy being a Tesla Inc. investor these days.

Between a volatile chief executive, relentless attacks from short sellers and a fast evolving competitive landscape, the pressure on the electric-car maker’s shares has been rising. That was compounded further on Tuesday by couple of not-so-flattering reports from two large Wall Street firms and Mercedes-Benz’s unveiling of a high-end electric car that’s expected to start production in the first half of next year.

Tesla Hits 3-Month Low on Mercedes News, Negative Calls

Tesla shares closed down 4.2 percent on Tuesday in New York to $288.95, the lowest price since May 31. After the longest streak of daily declines since March, the stock has now lost nearly 24 percent of its value since Elon Musk’s tweet about taking the company private early last month.

Goldman Sachs analyst David Tamberrino reinstated his sell rating on the stock Tuesday. While there’s potential for Model 3 production and deliveries to grow and drive positive free cash flow in the second half of the year, that’s unlikely to be sustained as working-capital tailwinds abate and spending ramps back up after a period of cash conservation, he wrote. Goldman had restricted its coverage of the stock while it was advising Musk on taking the company private.

Separately, Morgan Stanley’s Adam Jonas published a note saying Tesla’s ride-sharing or robo-taxi efforts could be worth only a fraction of Waymo’s, lowering his initial predictions about the potential business.

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