Morgan Stanley predicts that Tesla stock ( NASDAQ:TSLA ) will continue to behave like a technology company stock listed on Hong Kong’s Hang Seng or the Shanghai Composite index until at least the year 2030. This prediction is based on the fact that a significant portion of Tesla’s revenues come from sales made in China.
The electric vehicle manufacturer’s analysts stated in a research note that was published on Monday that due to the fact that up to half of the company’s revenues come from China, the company is likely to find itself intimately connected to the price fluctuations of China’s technology companies.
According to the group of equity analysts led by Adam Jonas, “We believe Tesla earns as much as one-half of its profitability from the Chinese market, possibly making the company a derivative of a Chinese tech stock,”
This year, the Chinese economy has been held back by a number of factors, including Beijing’s zero-COVID policy of lockdowns and a crisis in the country’s housing market. The measurement of 3.9% year-on-year GDP growth for the third quarter released this week indicates that the economy is on course to fall well short of the Communist Party’s 5.5% objective for the year.
Tesla cut the prices of its Model 3 and Model Y electric vehicles in China by nine percent on Monday, as Chinese companies began to express concerns about the possibility of an economic slowdown.
Tesla Stock Price ( NASDAQ:TSLA )
This might put more pressure on the Tesla stock price of the electric vehicle manufacturer, which increased by 2.7% to $216.95 just after the opening bell on Tuesday, but has dropped by more than 20% in the last month. As a result of “minor revisions” to Morgan Stanley’s earnings-based model, Jonas reduced his price estimate for Tesla shares from $350 to $330 per share. He explained this shift ...
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