Morgan Stanley Cuts Tesla Price Target to $320
Morgan Stanley analysts, headed by Adam Jonas, have cut Tesla’s price target to $320 from $345, maintaining its buy rating but warning of a potential loss this year based on Gap accounting if demand slows. Jonas highlights other automakers’ EV and hybrid offerings, and states that Tesla’s product is relatively aged and not as exciting as it once was. Despite this downbeat analysis, Jonas does still see value in the stock. Tesla’s share price has suffered a rough slide so far this year, down around 30%.
𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀
Tesla is not the only game in town. While Elon Musk and Tesla have become household names, traditional automakers are catching up with their own electric and hybrid offerings, meaning Tesla’s product is relatively aged and what was once so exciting about it is beginning to fade. Morgan Stanley’s Adam Jonas warns clients of Tesla’s slowing demand and increasing competition in major markets like California, as well as China.
𝗔𝘂𝘁𝗼 𝗦𝘁𝗼𝗰𝗸
Tesla’s share price has slid by 30% so far this year, and it’s possible that there’s more downside ahead. However, Jonas argues that the stock is still worth buying because it’s not just an auto stock; it’s an energy play, a robotics play, and an AI play. Tesla may not be the only player in the game anymore, but it’s still a valuable piece of the puzzle.
Tesla’s Stock Performance Declines for a Third Consecutive Day
Tesla’s stock price has fallen for the third day in a row, following Morgan Stanley’s recent report warning of slowing demand and increased competition. Tesla’s stock has already seen significant declines this year and is down approximately 30%.
Market analysts have been questioning the sustainability of Tesla’s business model, and many have considered the possibility of the automaker running out of cash. However, Tesla’s CEO, Elon Musk, has stated that the company won’t need to raise additional funds this year, despite the recent turmoil.
𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀 𝗪𝗶𝘁𝗵 𝗧𝗲𝘀𝗹𝗮’𝘀 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗠𝗼𝗱𝗲𝗹
Adam Jonas of Morgan Stanley argues that despite the current downturn, Tesla is still worth buying because it’s not just an auto stock; it’s an energy play, a robotics play, and an AI play. The firm has maintained its buy rating but cut its price target from $345 to $320. Jonas has highlighted the relative age of Tesla’s product, slower demand, and growing competition from traditional automakers, indicating that stakeholders should be cautious. Nonetheless, there’s still value in the stock, and Tesla’s CEO, Elon Musk, has remained confident in the company’s ability to weather the storm.
𝗛𝗼𝘁 𝗧𝗮𝗸𝗲
Tesla is facing increasing competition from traditional automakers, whose EV and hybrid offerings are catching up to Tesla’s aging product. Morgan Stanley’s Adam Jonas suggests that Tesla’s slowing demand and increased competition could result in financial losses this year. Despite this, Jonas still sees value in the stock due to its broader implications for the energy, robotics, and AI industries. Tesla’s share price has already fallen significantly this year, down around 30%, but the company’s CEO, Elon Musk, remains confident, stating that the company won’t need to raise additional funds this year. In the current market, it seems that investors should take caution with Tesla’s stock.
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