Wells Fargo analyst Colin Langan slapped Tesla with an underweight rating and set a measly $120 price target for the electric car maker. The analyst predicts Tesla will report a disappointing second quarter earnings per share of just 20 cents, missing Wall Street expectations of 41 cents by a huge margin. Lower electric vehicle credits and weaker energy business profits will drag down the company's performance. Langan expects Tesla to bring in $650 million in credits during the second quarter, up slightly from the first quarter's $595 million. Energy business profit margins will likely shrink from 29 percent to 24 percent because of tariffs on Chinese imports.
Tesla's car business margins should bounce back to 13 percent from the...