China To Shift From Auto Importer To Exporter, Says Morgan Stanley Analyst After Recent Tesla Price Cut
Portfolio Pulse from Anan Ashraf
Morgan Stanley analyst Adam Jonas has maintained an 'equal-weight' rating on Tesla with a price target of $250, following the company's recent price cuts in China. Jonas believes China will shift from being an auto importer to exporter due to supply-demand dynamics. He also noted that legacy automakers are collaborating with Chinese players, such as Volkswagen's collaboration with XPeng, but does not expect these partnerships to significantly impact the market. Tesla's shares closed down 2.8% at $219.22 on Thursday.
August 18, 2023 | 4:47 am
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NEGATIVE IMPACT
Tesla's recent price cuts in China and the 'equal-weight' rating maintained by Morgan Stanley analyst could impact the company's stock price.
The recent price cuts in China could potentially lead to increased sales, but the 'equal-weight' rating suggests that the stock is fairly valued and may not see significant growth in the short term. Additionally, the closing down of Tesla's shares could negatively impact investor sentiment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Volkswagen's collaboration with XPeng in China may not significantly impact the market, according to Morgan Stanley analyst.
While Volkswagen's collaboration with XPeng could potentially increase its market share in China, the analyst's view that these collaborations may not significantly impact the market could limit the potential positive impact on Volkswagen's stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60
NEUTRAL IMPACT
XPeng's collaboration with Volkswagen in China may not significantly impact the market, according to Morgan Stanley analyst.
While XPeng's collaboration with Volkswagen could potentially increase its market share in China, the analyst's view that these collaborations may not significantly impact the market could limit the potential positive impact on XPeng's stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60