Analyst whose downgrade is hitting Tesla says the investing case has structurally changed, sees earnings downside

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Deutsche Bank analyst Emmanuel Rosner is defending his decision downgrade Tesla as the company potentially shifts away from building its low-cost vehicle.

Deutsche Bank analyst Emmanuel Rosner is defending his decision downgrade Tesla as the company potentially shifts away from building its low-cost vehicle — noting there have been major changes to the stock's investment case. "Earnings are under pressure, free cash flow is under pressure," he told CNBC's " Squawk on the Street " on Thursday. "There's no turning point to this, and this is thesis changing. This is why we're downgrading the stock.

" The comments from Rosner come after the longtime Tesla bull lowered his rating on the stock to hold from buy, as the electric vehicle giant plans to potentially move away from building its low-cost Model 2 vehicle in lieu of a self-driving robotaxi. The stock fell 3% on the back of the downgrade, contributing to its 39% year-to-date loss.

 

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