Morgan Stanley's Adam Jonas Downplays Impact Of Tesla's 2M Vehicle Recall, But Flags Delay In FSD V12 And Departure Of Key AI Executives
Portfolio Pulse from Anan Ashraf
Morgan Stanley analyst Adam Jonas commented on Tesla's recall of over 2 million vehicles, stating it will not have a cost impact due to it being a software update. He also mentioned delays in the release of Tesla's Full Self-Driving (FSD) version 12 and the departure of key AI executives. Despite these issues, Jonas remains bullish on Tesla, maintaining an overweight rating with a $380 price target, citing the company's diverse value streams and strong financials. Tesla shares closed up 4.9% on Thursday.
December 15, 2023 | 3:08 am
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Adam Jonas of Morgan Stanley remains bullish on Tesla despite the recall and AI team departures, maintaining a $380 price target. The recall is seen as non-material due to it being a software update, and the company's strong financial position is emphasized.
The recall is not expected to have a financial impact on Tesla, which is positive for the stock. The departure of AI executives could raise concerns about the development of FSD, but Jonas's continued bullish stance and the closing stock price increase suggest a positive short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100