Tesla shares fall from record high after warning from analyst

SAN FRANCISCO (Reuters) – Shares of Tesla (TSLA.O) fell from record highs on Tuesday after an analyst warned that the electric car maker may take longer than expected to become profitable.

Jefferies analyst Philippe Houchois launched coverage of Tesla with an “underperform” rating, helping send shares of the company headed by entrepreneur billionaire Elon Musk down 2.17 percent to $ 376.74 after closing at a record high the day before.

“Achievements to-date and vision are impressive, but we don’t think Tesla’s vertically integrated business model can be scaled up as profitably and quickly as consensus thinks and valuation multiples imply,” Houchois warned in a research note.

Houchois’ $ 280 price target was well below the median analyst price target of $ 337.50, according to Thomson Reuters data.

Musk is counting on the recently launched Model 3, Tesla’s least pricey car, to make the Palo Alto, California company profitable and establish it as the leading electric carmaker ahead of BMW (BMWG.DE), General Motors (GM.N) and other long-established players.

Wall Street’s confidence in Musk has sent Tesla’s stock up 83 percent over the past year to record highs.

Skeptics believe Tesla’s aggressive production targets are unrealistic, that Musk is burning through cash too quickly and that the company’s electric cars will be overtaken by larger automakers.

Eight analysts recommend buying Tesla’s stock, while another eight recommend selling, and eight others have neutral ratings, according to Thomson Reuters data. That makes Tesla one of the 10 most poorly-rated stocks in the Nasdaq 100 index.

Reporting by Noel Randewich; editing by Diane Craft

Our Standards:The Thomson Reuters Trust Principles.


IDG Contributor Network: How to migrate IT to AWS in record time with the extended EC2

One of the problems with today’s IT transformation is the lack of reliable engineering approaches adapted to fast-paced business environments. Much more than we think, it prevents a productive dialogue between consultants and clients.

While CIOs expect big pictures that demonstrate changes and benefits, certain consultants continue to address IT transformation through the specifics of the solutions they plan to implement. 

IT transformation design patterns are the answers, I’ve been using them for 15 years to help Fortune 500 companies get value from the transformation of their IT.

The extended EC2 design pattern I developed to facilitate application and even data center migration to the Amazon Web Services (AWS) cloud environment is a case in point.

To read this article in full or to leave a comment, please click here

CIO Cloud Computing

HigherGround Develops New Features To Record Critical Communications With Certainty


HigherGround is pleased to offer two new features for the Capture911 call recording solution—Speech Analytics and Mobile Recording. These valuable tools offer many benefits to improve intelligent recording and incident reconstruction in emergency dispatch facilities.

HigherGround will introduce these new features to the public safety community during the National Emergency Number Association conference, in Denver CO, at booth #226.

Speech Analytics offers previously unattainable levels of insight into operations. Powered by the industry-leading CallMiner engine, Speech Analytics converts recorded interactions into text. TopicMiner indexes 100% of captured interactions to identify trends, and categorizes meaningful phrases into a word cloud or topic list. This feature not only provides intelligence to improve community satisfaction and dispatcher performance, but can also discover emerging trends an organization might not otherwise find.

Mobile Recording provides a mobile app to record the inbound and outbound calls made on mobile devices, as well as associated metadata. With quick remote uploads, interactions integrate directly into the familiar and intuitive HigherGround interface, so users can view, replay and analyze mobile calls with ease.

“HigherGround continues to develop new leading-edge features for our recording solutions based on customer feedback and industry trends,” remarked HigherGround president and CEO, Terry Ryan. “Our fully scalable products and open architecture allow our customers to create a truly customized call recording solution that can expand as their PSAP requirements do.”

HigherGround provides reliable recording for critical communications in Public Safety Answering Point (PSAP) operations, emergency dispatch facilities and 9-1-1 centers. Our multi-channel recording and incident reconstruction solutions transform data into actionable intelligence, enabling decisions with certainty to optimize operations, enhance operator performance and reduce costs. HigherGround—a proven industry standard—is the OEM recording product of choice for several major companies, and has been deployed in more than 1000 PSAP operations in the past decade.

For more information, visit higherground.com or call (800) 576-4223.


HigherGround, Inc., HigherGround and the HigherGround logo are registered marks of HigherGround, Inc. Capture911 is a trademark of HigherGround, Inc. Third-party trademarks mentioned are the property of their respective owners. © 2015 HigherGround, Inc. All rights reserved.