Tesla Motors Shares Get 'Capped'

Shares in electric carmaker take hit after Capstone Investments downgrades valuation to 'sell' on concerns over viability of Model S launch.

Published: 13-Jan-2011

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Tesla gets "Capped"
"Merry Christmas," you say? Not for Tesla Motors (Nasdaq: TSLA) shareholders, it isn't. For the second (trading) day in a row, shares of the electric car pioneer are plunging. The reason: California's Capstone Investments, a boutique investment banker focusing on small and microcap stocks, downgraded the shares to "sell" last week. Tesla promptly tumbled 8% Thursday, followed by what's shaping up to be a double-digit percentage decline this morning.

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