UBS: Tesla shares will collapse 30% over the next 12 months

Tesla shares will decline significantly as the company will not be profitable in 2019, according to UBS

The strong position for the sale of the shares comes from the forecasts that the electric car manufacturer will report profits for the second quarter below expectations.

"We are cautious about Q2 results for Tesla," said analyst Colin Langan. "The market must not overlook the fundamental penetrations that continue to exist in terms of Tesla3's profitability and fixed storage." We believe Tesla will eventually need additional external funding. "

Shares fell 3.3% on Monday to $ 287.20.

Langan reiterated the $ 195 price target, a 34% decline from Friday's closing.

The analyst lowered expectations for Tesla's Q2 shares from $ 3 per share to $ 1.71 against Wall Street's consensus estimate of $ 2.88. He has increased his earnings per share for the third quarter to 72 cents but has cut the pro-life gains in 2019.

Tesla plans to report a quarterly report on Wednesday. Shares of the company dropped 4.6% this year against the 5.4% profit of the S&P 500

Source: CNBC

Read more:

• Peloton can collaps by 86% under competitive pressure
• Hong Kong will continue to push down the financial markets!
• S&P on a historic high, analysts expect more gains
• 7 best exchange-traded ETFs for dividends
• Five cannabis stocks under $10 you need to buy