Tesla Motors Inc.'s stock dropped 4% in active premarket trade Tuesday, after UBS recommended investors sell on the belief that the company will miss both storage and auto volume growth expectations. Analyst Colin Langan cut his rating to sell, after being at neutral since April 2014, and cut his stock price target to $210 from $220. Langan said he believes the stock, which has run up 35% over the past three months, is pricing deliveries of more than 1.5 million vehicles in 10 years and full utilization of storage capacity; "however, our analysis indicates that [Tesla's] current planned 15GWs of storage capacity may be larger than the market in 2020. He also said the addition to the Model X in the third quarter increases production complexity, which puts delivery targets at risk. The stock had closed Monday at $282.26, or just 1.3% away from the Sept. 4, 2014 record close of $286.04. It has run up 27% year to date, while the S&P 500 has tacked on 3.4%.
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