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Tesla in ‘Code Red Situation’ as Sell-Off Exceeds 20%

  • Wedbush’s Dan Ives cuts price target to $230 from $275
  • Shares have been trading at lowest level since December 2016
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Daniel Ives, analyst at Wedbush, says "hurricane-like headwinds" face Tesla.Markets: The Open." (Source: Bloomberg)
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Tesla Inc.’s stock rout following this month’s $2.4 billion capital raise intensified after a once-bullish analyst called the range of issues facing the electric-car maker a “code red situation.”

The shares have dropped in nine of the last 10 trading days, a stretch that started the day Tesla closed offerings of new stock and convertible bonds to shore up its balance sheet. In that span, Tesla has plunged more than 20% and fallen back behind Ford Motor Co. by market capitalization.