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Wednesday, 08/27/2014 8:01:48 AM

Wednesday, August 27, 2014 8:01:48 AM

Post# of 364286
Tesla's warranty modestly lowers gross margins, says Pacific Crest
Pacific Crest said Tesla's drivetrain warranty modestly lowers gross margins, but strengthens share gain potential. As a result of the the warranty reserve change, the firm lowered 2014 EPS to $1.17 from $1.30, 2015 to $3.08 from $3.18, and 2016 to $7.80 from $7.99. The analyst continues to recommends shares given solid execution, new product optimism, and new projects such as the Gigafactory and Model III. Shares are Outperform rated with a $316 price target

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