Tesla's Stock Falls After Price Target Cut, But Analyst Sees Chance Of a Rebound

Tesla Motors Inc.'s stock dropped 4.7% in premarket trade, after Analyst Brian Johnson at Barclays cut his price target to $165 from $180, saying, "expectations on fundamentals need to come in check." Johnson reiterated his underweight rating on the electric car maker, citing concerns that a slow ramp of the Model X vehicle could lead to disappointing outlooks on deliveries on gross margin when Tesla reports fourth-quarter results on Wednesday, but said he wouldn't rule out a near-term rebound in the stock price. He said the recent increase in bearish sentiment in the stock, coupled with the unveiling of the Model 3 vehicle in March, could reinvigorate interest in the beaten down stock. Short interest, or bearish bets, on Tesla's stock has increased more than 20% over the last six months to an 11-month high. The stock, which is on track to open at the lowest level since January 2014, has plunged 38% so far this year through Monday, while the S&P 500 has lost 9.3%.