Price Target: $400 (was $320)
Rating: Hold
"We think sales were boosted by customer purchases ahead of its federal EV tax credit expiration. TSLA shares surged in the back half of 2019, as balance sheet-related concerns eased and investors began to look ahead to the China startup and 2020 Model Y debut," Garrett Nelson wrote Friday.
He continued: "Still, we think questions remain about first half 2020 results and gross margin sustainability; we point out that Tesla is already lowering prices in China and faces a flood of EV competition in the U.S., with at least 25 new models debuting this year (with most eligible for the full $7,500 tax credit)."