Morgan Stanley analyst Adam Jonas believes there’s an EV market “recession” coming but feels EV giant Tesla, Inc. (NASDAQ:TSLA) will emerge stronger, thanks to its investments in the AI sector.
Analyst Recommendation: “The global EV slowdown has moved into the next phase of the Darwinian shakeout … We think Tesla won’t let a good ‘EV recession’ go to waste,” Jonas wrote.
The analyst reiterated his “overweight” rating on Tesla with a $310 price target.
“In fact, our valuation of the core auto business ($62/share) represents just 20% of our $310 price target,” he said.
Jonas argued that the ongoing EV slowdown has escalated into an EV recession, evidenced by layoffs, impairment charges, revised EV targets, increased collaboration among competitors, and even the exit of smaller players. According to Jonas, now de-listed EV company Fisker is only the first of many players to be pushed to the ...