A Tesla Model S is displayed during the London Motor and Tech Show at ExCel on May 16, 2019 in London, England.
John Keeble | Getty Images News | Getty Images
Analysts at Credit Suisse initiated coverage of Tesla Wednesday with a relatively bearish outlook on the electric vehicle maker, thanks in part to ambitious, old-school competitors like Volkswagen.
Analyst Dan Levy came out with a $189 price target — roughly 15% below where the stock closed on Wednesday — and an “underperform” rating on the stock based on the view that the stock does not reflect key profit risks at its current levels. While Tesla is leading in areas like electrification and software that will “define the future of carmaking,” according to Levy “it faces risks ahead – reflected in our below-consensus estimates.”
“While we see clear growth ahead for Tesla, we believe its volume trajectory more likely positions it as a niche automaker,” he said in a note to clients Wednesday. “While we appreciate Tesla’s…