Wells cuts Tesla target on ‘shocking’ European sales drop

Wells Fargo analyst Colin Langan lowered the firm’s price target on Tesla (TSLA) to $130 from $135 and keeps an Underweight rating on the shares. The firm says “shocking” year-to-date sales in Europe for Tesla “have finally shifted focus” to the company’s fundamentals. The analyst points out that Tesla’s sales are tracking down 16% year-to-date and European Union sales were down 45% in January. Wells sees further risks to the company’s volumes, price, and margins. Investors are starting to agree that there is no fun in the fundamentals,” the analyst tells investors in a research note. Wells believes the year-to-date decline in Tesla’s Europe sales was likely a key catalyst in the recent share correction, as it raises the prospects of another year of no growth. The recent protests and vandalism “also add to concerns,” the firm notes.