2024-03-06 10:38:47 ET
Shares of Tesla Inc (NASDAQ: TSLA) are in the red on Wednesday after a long-time bull trimmed his price target on the EV stock.
Tesla faces near-term headwinds
Adam Jonas lowered his price objective on this morning to $320 amidst rising competition from hybrid vehicles.
Its recent price cuts are not helping either in terms of accelerating demand, the Morgan Stanley senior analyst told clients in a research note today.
If there was ever a time for Tesla to potentially post a GAAP EBIT loss in the auto business, it may be this year.
The news arrives only a day after an arson attack on the Nasdaq-listed firm’s plant in Berlin. Tesla stock is now down close to 30% versus the start of this year.
Watch here: https://www.youtube.com/embed/QlHmf8667PQ?feature=oembedCan Tesla stock be valued as AI beneficiary?
Jonas sees a slowdown in demand particularly in the infrastructure-rich California and the oversupplied Chinese market as near-term headwinds for Tesla Inc.
The Morgan Stanley analyst agreed that is an energy, robotics, and artificial intelligence company as well but does not expect it to be “valued as an AI beneficiary as long as core auto earnings are being revised down.”
Just to be super clear, I am not donating money to either candidate for US President
— Elon Musk (@elonmusk) March 6, 2024
Nonetheless, he remains bullish on Tesla stock for the long term as evidenced in his new price target that still suggests about a 16% upside from here.
Last month, Ford CEO Jim Farley urged the Wall Street to “stop looking at Tesla as future of the automotive industry” ( read more ).
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