Automobile maker company TESLA experienced a slight dip on its stock rating last Friday. This is after an analyst at CFRA, Garrett Nelson in a report from MarketWatch, lowered the company’s rating to TSLA, +0.01% stock to sell. He was quoted saying “[Tesla stocks] have gotten ahead of underlying fundamentals and do not appropriately reflect [risks]”.
The analyst kept the figure of $1,100 on the shares’ 12-month price target. He attributed the slight dip to the company’s construction of Gigafactory 4 and 5 which forecasted a relevant drag on the company’s free cash flow in the upcoming several quarters.
The company is expected to release its second-quarter figures on Wednesday next week, July 22nd. Analysts from FactSet expects an adjusted loss of 14 cents on the firm’s sales of $5.2 billion. Tesla’s shares have seen a meteoric rise, with gains of 259%.