A team of analysts led by Adam Jonas at Morgan Stanley lowered their price target on shares of Tesla for the second time in as many months.
, led the analysts to lower their price target from $283 to $260.
"At a high level, a number of recent events at the company are raising questions in the minds of investors… including statements by Elon Musk and changes in key senior management… now the decision to close stores and moves to continue to reduce headcount," a team of analysts led by Adam Jonas wrote in a note to investors out Tuesday.
They added:"We are not inclined to buy now as we don't believe we'd be compensated for the amount of risk we're taking." The firm's new price target implies a drop of 11% from Monday's closing price. Back in early February, Morgan Stanley cut its price target from $291 to $283. Prior to February, the last time the firm lowered its target was in May.
Furthermore, the analysts expect Tesla's free cash flow to fall to -$935 million from a previously expected -$621 million in the first-quarter. For the full year, it sees free cash flow of -$1.1 billion.
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