Analyst Stays Committed to Tesla Inc (TSLA) Sell Call Ahead of Earnings

Tesla Inc (NASDAQ:TSLA) checks in with earnings on Wednesday, and one Wall Street firm is reaffirming its rating in anticipation of that. UBS is sticking to its sell rating for the electric vehicle maker.

CNBC shares the firm’s take on Tesla.

Tesla shares will fall significantly because the company will not be profitable in 2019, according to UBS.

The firm reaffirmed its sell rating for Tesla shares, predicting the carmaker will report second-quarter earnings per share below expectations.

Analyst Colin Langan shared additional insight into the firm’s feelings on Tesla in a note to clients. “We are cautious on TSLA Q2 results … Q2 results [will] likely highlight cash flow and profit challenges,” he wrote. “The market should not ignore fundamental headwinds that persist with regards to TSLA’s Model 3 profitability, stationary storage, and solar … we believe TSLA will eventually need additional outside funding.”

The firm has also reaffirmed its price target of $195 for shares of Tesla.

Tesla Inc shares were trading at $290.35 per share on Monday morning, down $6.83 (-2.30%). Year-to-date, TSLA has declined -6.74%, versus a 6.08% rise in the benchmark S&P 500 index during the same period.

TSLA currently has a StockNews.com POWR Rating of C (Neutral), and is ranked #9 of 24 stocks in the Auto & Vehicle Manufacturers category.