UBS Cut Tesla Motors (NASDAQ:TSLA) To Sell, Stock Falls

$UBS, $DB

Tesla Motors Inc. (NASDAQ:TSLA) declined after UBS AG cut its rating on the stock to Sell, citing prospects for growth in the electric-car maker’s auto and battery-storage businesses.

The shares finished off 4.8% to 268.33 in New York after dropping as much as 5.3%, the most intra-day in 2 weeks. The downgrade was at least the 3rd this month for Tesla, after reductions by Deutsche Bank (DB) and Pacific Crest Securities.

UBS (UBS) analyst Colin Langan said in a note to investors Tuesday that “we expect both storage and auto volume growth to disappoint” as Tesla faces new competitors, rising costs and funding needs. UBS, which had rated the Palo Alto, CA- based company’s shares as neutral, also lowered its 12-month price target to 210 from 220.

Tesla had gained 27% this year through Monday, as the Standard & Poor’s 500 Index rose 3.4%. According to the market data 10 analysts rate Tesla as a Buy, 8 as a Hold and 5 as a sell.