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Tesla’s ‘Overvalued’ Stock Being Falsely Driven By ‘Tech-Oriented Investors,’ Morgan Stanley Says

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Tesla's 'Overvalued' Stock Being Falsely Driven By 'Tech-Oriented Investors,' Morgan Stanley Says“Tech-oriented investors” are driving Tesla Inc.’s (NASDAQ: TSLA) stock price higher without understanding the implications of running a car company, Morgan Stanley analysts said in a note Tuesday, as reported by Forbes.The Tesla AnalystMorgan Stanley’s Adam Jones has maintained his previous rating of “underweight” on the company’s stock with a price target of $650.The Tesla ThesisJones noted that it is extremely unlikely for Tesla to justify its current stock price within the next decade.Morgan Stanley forecasts Tesla to produce 2 million electric vehicle units annually for the next 10 years. At a stock price of $1,000, the automaker’s stock is “discounting roughly 4 million units” by 2030, Jones said, according to Forbes.False Comparison With Tech GiantsTesla’s stock is largely being driven by investors who draw a false comparison of the company with established technology companies and ignore the set of risks that come with running a car company, Jones suggested.To be able to draw such a comparison, “one would have to consider (or ignore) significant inherent differences in Tesla’s business model and capital intensity,” the Morgan Stanley analyst wrote, according to Forbes.”One must also take into account many of Tesla’s business objectives face a degree of execution risk that may be significantly higher than many of the more proven/mature companies in this analysis.”What ElseGLJ Research founder Gordon Johnson similarly suggested on Benzinga’s PreMarket Prep show earlier in the day that he was bearish on Tesla’s stock.TSLA Price ActionTesla shares closed 0.75% higher at $1,001.78 on Tuesday. The shares traded nearly 0.5% lower in the after-hours session at $997.Latest Ratings for TSLA DateFirmActionFromTo Jun 2020Goldman SachsDowngradesBuyNeutral Jun 2020Morgan StanleyDowngradesEqual-WeightUnderweight Jun 2020WedbushMaintainsNeutral View More Analyst Ratings for TSLA View the Latest Analyst Ratings See more from Benzinga * Tesla Shareholders Meeting, ‘Battery Day’ Moved To September * Bitcoin Scammers Used Elon Musk’s Name To Profit M Over Two Months * Tesla Asks Texas For Tax Incentives As It Proposes To Start Construction For New Factory By Q3(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.


Lyron Foster is a Hawaii based African American Musician, Author, Actor, Blogger, Filmmaker, Philanthropist and Multinational Serial Tech Entrepreneur.

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