Stifel Reiterates Hold Rating on Tesla Motors Following 3Q13 Quick Look

In a report published Wednesday, Stifel analyst James J. Albertine reiterated a Hold rating on Tesla Motors TSLA. In the report, Stifel noted, “We view TSLA as an exceptional start-up luxury auto manufacturer. We believe a longer-term investment strategy exists for such an endeavor, but not at 60-70x our 2015 P/E estimates. We are skeptical given TSLA's desire to be more than a niche luxury manufacturer by developing a sub-$50k price point EV when the market has shown no appetite, in our opinion, for such a product. Competition is also looming, so development time will come under pressure, which could drive operational mis-steps.” Tesla Motors closed on Tuesday at $176.80.