Software engineers straight out of college often make six-figure salaries, not counting equity compensation.Technologyread more
Representatives from the Chinese side say they think it likely that Chinese President Xi Jinping will attend the G-20 meeting later this month. But in order to reach a trade...China Economyread more
Wall Street, though, is clamoring for a rate cut, with an 85% chance of a move in July and a 61% probability of three reductions by year's end.The Fedread more
A company spokesperson said the outage was the result of a "an internal technology issue" and was not security related.Retailread more
Using MIT's living wage calculator, CNBC Make It mapped out the minimum amount a single parent must earn to meet their basic needs without relying on outside help in every...Earnread more
In the survey, 66% of Democratic primary voters say they'd be enthusiastic or comfortable about Biden as their nominee to take on President Trump in the 2020 election. Just...Politicsread more
You can save money by doing a quick check and unsubscribing from apps you no longer use.Technologyread more
The flattening of the yield curve is exuding a bad omen for the stock market if history is any guide.Marketsread more
Stratolaunch, the world's largest airplane, which flew once, is up for sale, sources familiar told CNBC.Investing in Spaceread more
Transparency is key… or is it? With the first-ever non-transparent, actively managed exchange-traded fund receiving approval from the SEC, "ETF Edge" goes straight to the...ETF Edgeread more
Mired in a crisis over its best-selling 737 Max plane, Boeing could hand the spotlight over to its rival Airbus at the Paris Air Show.Airlinesread more
Tesla's market-crushing performance this year will not last, according to one Wall Street firm.
Jefferies told its client to avoid the electric car maker's shares, saying the company's financial performance will be weak in the coming years.
"It is with a bit of a heavy heart that we initiate coverage of Tesla at underperform," analyst Philippe Houchois wrote in a note to clients Tuesday. "Achievements to-date and vision are impressive, but we don't think Tesla's vertically integrated business model can be scaled up as profitably and quickly as consensus thinks and valuation multiples imply."
The analyst set a 12-month price target for Tesla shares at $280, representing 27 percent downside from Monday's close.
Houchois predicts Tesla will continue to lose money on an annual basis through 2019. He has "doubts about Tesla's ability to generate 30+% gross [profit] margin required to support its vertically integrated business model in distribution/supercharging."
The electric car maker's shares are outperforming the market this year, up 80 percent year to date through Monday compared with the S&P 500's 12 percent return.
"Given capital intensity, we don't think DCF [discounted cash flow] can justify the current valuation, let alone upside," he wrote. "We appreciate the growth upside from a brand whose reach goes well beyond auto markets and that valuing Tesla today assumes some form of 'steady-state' that is unlikely to happen anytime soon."
Tesla did not immediately respond to a request for comment. Its shares are down 2 percent in the Tuesday premarket session after the call.
— CNBC's Michael Bloom contributed to this story.