Tesla price target lowered to $170 from $190 at Wells Fargo

Wells Fargo lowered the firm’s price target on Tesla to $170 from $190 and keeps an Equal Weight rating on the shares. Tesla is trading down post market following a Q1 auto margin miss, the firm notes. The company walked back from its over 20% auto gross margin target and continued with price cuts, highlighting their cost edge versus peers. Wells is cautious of the discounting given long-term brand risk.