Tesla Inc. (TSLA) – Get report The shares declined further from the record highs on Thursday after Morgan Stanley analysts reduced their rating on the clean-energy car manufacturer to ‘underweight’, citing concerns about the sustainability of the recent stock increase.
However, Morgan Stanley analyst Adam Jonas raised his stock price target by $ 110, to $ 360 per share, to partly reflect the gain of more than 35% that the shares have seen in the last month as the group exceeded Street estimates for 2019 deliveries and cut the tape at its mass production facility in China.
“The momentum and short-term sentiment around the action is certainly very strong, but we finally question the sustainability of the momentum,” Jonas said, adding: “We believe that the current discounts on the share price of China, Berlin and the Model Y “.
“We are raising our expectations for the core of the car
business and lowering our expectations for the mobility business, resulting in a
net material increase in our target price, “said Jonas.” Our revenue forecast until 2030 increased
approximately 10% on average compared to our previous forecast, which culminated in approximately
Increase of 300,000 units by 2030 (to a total of 2 million units in annual volume) vs.
our previous forecast of 1.7 million in volume by 2030 “.
Tesla shares were marked 3.85% less in pre-market operations on Thursday to indicate an opening price of $ 498.52 each, a measure that would still leave the group founded by Elon Musk with a market value of $ 91.4 billion and a gain of more than six months. 100%
Morgan Stanley’s downgrade follows a report that suggests Tesla is once again the shortest stock in the US market, beating Apple Inc. AAPL, which has a market value of more than $ 1.4 billion.
Investors borrowed $ 14.5 billion to bet against Tesla shares, data from the financial analysis firm S3 Partners and published by Bloomberg, just before the $ 14.3 billion short against the iPhone manufacturer.
Tesla reached an all-time high of $ 547.41 earlier this week after Oppenheimer analysts raised their target price to a Wall Street maximum of $ 612 per share and called for its inclusion in the US benchmarks.
Oppenheimer’s Colin Rusch almost doubled its current target price for Tesla, which set $ 385 per share at the end of October to $ 612 per share in a client note arguing that the group has reached a “critical scale” to support flows of sustainable free cash.
It also suggests that the company controlled by Elon Musk could represent an “existential threat” to transport companies that do not have the ambition or the ability to innovate at the steamy pace of Tesla.