Tesla Motors (NASDAQ:TSLA) Price Where it Should Be

Citing high costs and lack of infrastructure resulting in 'range anxiety,' Capstone Investments said on initiating coverage of Tesla Motors (NASDAQ:TSLA) that is its priced just where it should be.

Capstone noted, "Market for EVs will not grow in the time frame anticipated. We believe the premium cost and range anxiety will limit adoption of EVs. Tesla has sold - 1,400 vehicles since 2008 primarily because of a high sales price ($109K base price) but also because of the lack of recharging infrastructure, range limitations versus conventional vehicles and lack of a brand name. We expect that hybrid EVs (HEVs) and plug-in hybrid EVs (PHEVs) will continue to take the lion's share of green conscious automobile consumers given their lower price points, better driving ranges and availability from brand name OEMs such as General Motors, Nissan and Toyota."

Capstone Investments initiated coverage on Tesla Motors (NASDAQ: TSLA) with a "Sell" rating. Tesla was trading at $30.62, down $2.01, or 6.16 percent as of 12:49 PM EST. They have a price target on them of $22.