Tesla Stock Opens Lower After Analysts Say Model X Is Cool, But Price Is Too High

Shares of Tesla Motors Inc. fell more than 2% Tuesday after Morgan Stanley lowered its target to $450 from $465, citing the high sticker price of the just-unveiled Model X. A group of analysts at Morgan Stanley, who tend to be among the more bullish on Tesla, said the sticker price for the Model X, which they estimate will be in the range of $120,000 to $130,000, might make 2016 volume targets difficult to achieve. Tesla has not yet released the price of the Model X, which is shipping later next year. The Morgan Stanley analysts nevertheless maintained an outperform rating on the stock, and called the Model X SUV an "impressive proof of concept for design, performance and utility." Shares of Tesla have fallen 12% over the last three months, compared with a 4% decline for the S&P 500.