Tesla initiated with a Reduce at HSBC

HSBC initiated coverage of Tesla with a Reduce rating and $146 price target. Tesla cars may well be the main driver of revenue and profits currently, but if the group is to be taken at its word, the future for Tesla is about robots, autonomous vehicles, energy storage and super-computers, the analyst tells investors in a research note. The firm adds however that the expected cost of capital for these businesses should be well above the group average given the regulatory and technological challenges they face.