Bank Of America Is Unsurprised By Reveal At Tesla Motors Media Event

In a report published Friday, Bank of America analyst John Lovallo II reiterated an Underperform rating and $75.00 price target on Tesla Motors Inc (NASDAQ: TSLA).

In the report, Bank of America noted, “Late last evening Tesla hosted a widely anticipated media event to reveal the meaning of CEO Elon Musk's recent cryptic tweet ‘About time to unveil the D and something else.' As it turns out, and likely of little surprise to most, the ‘D' represents Tesla's new dual motor, all-wheel-drive (AWD), Model S offering. The AWD version of the Model S will reportedly perform more effectively in poor driving conditions and modestly increase battery range from a maximum of approximately 260 miles to roughly 275 miles per charge. The second component of Musk's tweet, “something else”, refers to driver assist content, most of which is already widely available throughout the auto industry. We would note that Tesla also recently disclosed it is exploring a potential Certified Pre-Owned (CPO) vehicle program, in or around 2016, when the first resale value guarantee Model S sedans reach three years of age. Overall, we believe last night's event and recent news may fail to impress investors and potentially take some wind out of the sails of the bulls.”

Tesla Motors Inc closed on Thursday at $257.01.