Tesla story 'broken?' Analysts cut their price targets on the electric car maker after disappointing third-quarter earnings

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Several analysts reduced their price targets after the company reported a miss on top and bottom lines in the third quarter.

Wall Street analysts weren't too optimistic heading into Tesla 's third-quarter earnings — and the company's downbeat results is keeping them on the sidelines. The electric vehicle maker missed on both earnings and revenue for the first time since the second quarter of 2019. CEO Elon Musk tempered investors' expectations for the soon-to-be launched Cybertruck, emphasizing that it likely will not create significant positive cash flow for at least 12 months after production starts.

mountain Tesla shares Many analysts covering Tesla had already forecast margin pressures due to lagging sales and just reiterated their ratings on the company's shares following Wednesday's release. However, several firms further reduced their price targets. Many had already lowered their price targets ahead of the earnings announcement. Goldman Sachs reduced its price target to $235 from $265, which implies 3.2% downside. It maintained its neutral rating on the stock.

 

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