Tesla upgraded to Buy from Hold at Berenberg

Berenberg analyst Adrian Yanoshik upgraded Tesla to Buy from Hold with a price target of $200, down from $255. The company’s price cuts represent an investment in growth, which reflects its cost leadership strategy, the analyst tells investors in a research note. The firm believes Tesla’s new plants offer multi-year opportunity in capital and labor efficiency and thinks that ramping its battery cell production offers further economies of scale. It expects Tesla to retain its gross and EBIT-margin lead over legacy car makers. Berenberg believes pricing concerns are "misguided."