Tesla's stock slump has gone too far, Morgan Stanley says - BNN Bloomberg

2022-11-23 8:30:00 PM

After losing nearly US$300 billion in market value in two months, a growing chorus of Tesla analysts say the share-price decline has gone far enough, pushing the stock higher on Wednesday.

After losing nearly US$300 billion in market value in two months, a growing chorus of Tesla analysts say the share-price decline has gone far enough, pushing the stock higher on Wednesday.

After losing nearly US$300 billion in market value in two months, a growing chorus of Tesla analysts say the share-price decline has gone far enough, pushing the stock higher on Wednesday.

See Full Stock Page » After losing nearly US$300 billion in market value in two months, a growing chorus of Tesla Inc.Scroll Right Article content Despite challenges including decelerating demand and price cuts in China, Tesla is the only electric vehicle maker covered by Morgan Stanley that generates a profit on the sale of its cars, Jonas wrote in a note.Scroll Right Article content Despite challenges including decelerating demand and price cuts in China, Tesla is the only electric vehicle maker covered by Morgan Stanley that generates a profit on the sale of its cars, Jonas wrote in a note.Scroll Right Article content Despite challenges including decelerating demand and price cuts in China, Tesla is the only electric vehicle maker covered by Morgan Stanley that generates a profit on the sale of its cars, Jonas wrote in a note.

analysts say the share-price decline has gone far enough, pushing the stock higher on Wednesday.Morgan Stanley analyst Adam Jonas earlier said that Tesla is approaching his “bear case” price target of US$150, presenting an opportunity for investors to buy at a bargain price.Shares rose 1.Citi analysts upgraded the shares to neutral from sell, saying that a more than 50per cent slump this year “has balanced out the near-term risk/reward.5 per cent in premarket trading to US$172.” Sign up to get breaking news email alerts sent directly to your inbox Despite challenges including decelerating demand and price cuts in China, Tesla is the only electric vehicle maker covered by Morgan Stanley that generates a profit on the sale of its cars, Jonas wrote in a note.40.The analyst -- who also highlighted Tesla’s potential to benefit from consumer tax credits in the U.The stock has slumped this year amid rising raw materials costs, issues with production and sales in China and pressure on customer budgets.

S.Latterly, chief executive Elon Musk’s focus on turning around Twitter Inc.Latterly, chief executive Elon Musk’s focus on turning around Twitter Inc.-- reiterated his US$330 price target.Shares rose as much as 4.Advertisement 3 This advertisement has not loaded yet, but your article continues below.4 per cent to US$177.Article content The distraction caused by Twitter is essential to stop the stock slide, according to Jonas.34 in New York.“There must be some form of sentiment ‘circuit breaker’ around the Twitter situation to calm investor concerns around Tesla,” he wrote.“There must be some form of sentiment ‘circuit breaker’ around the Twitter situation to calm investor concerns around Tesla,” he wrote.

The stock has slumped this year amid rising raw materials costs, issues with production and sales in China and pressure on customer budgets.Latterly, Chief Executive Officer Elon Musk’s focus on turning around Twitter Inc.has also hit sentiment, with US$300 billion wiped off Tesla’s market cap in the past two months, according to Bloomberg calculations.The distraction caused by Twitter needs to end to stop the stock slide, according to Jonas.“There must be some form of sentiment ‘circuit breaker’ around the Twitter situation to calm investor concerns around Tesla,” he wrote.

Despite all of the challenges Tesla has faced this year, Wall Street has mainly stayed bullish.The majority of Tesla analysts tracked by Bloomberg rate the stock a buy or equivalent, while the shares would need to rally a whopping 80 per cent to hit the median analyst target price.This year’s slump has left the stock trading at 31 times forward earnings, down from more than 200 times in early 2021.Citi analyst Itay Michaeli, who upgraded the stock on Wednesday, has one of the lowest price targets on the Street, at US$176.The analyst said he was turning more positive because Tesla’s slump means that some of the overly-bullish expectations in the stock, including on unit sales, have now been priced out.

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Tesla stock a bargain as it nears Morgan Stanley bear caseTesla has lost nearly US$300 billion in market value in two months and analysts say the share\u002Dprice decline has gone far enough. Read on.

Tesla stock a bargain as it nears Morgan Stanley bear caseTesla has lost nearly US$300 billion in market value in two months and analysts say the share\u002Dprice decline has gone far enough. Read on.

Tesla stock a bargain as it nears Morgan Stanley bear caseTesla has lost nearly US$300 billion in market value in two months and analysts say the share\u002Dprice decline has gone far enough. Read on.

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