S&P 500 futures are up 0.3% ahead of the open while Nasdaq futures are up only fractionally. The Nasdaq is on a nine-day winning streak, which is the longest in two years.
What won’t help is a 1% decline in Tesla shares in the premarket. HSBC initiated coverage on Tesla today with a ‘reduce’ rating and a target of $146 (from $220 currently).
The company said Tesla is working on some good ideas and initiatives but has consistently struggled with timing and commercialization.
“We see considerable potential in Tesla’s prospects and ideas, but we think the timeline is likely to be longer than the market and valuation is reflecting,” wrote HSBC analyst Michael Tyndall.
He also highlighted risks around Elon Musk as a source of free marketing but also a wild card.