Tesla Bull Adam Jonas Says Q4 Earnings Call Provided Nothing To Disrupt 'Prevailing Sentiment Of Bearishness' — Retains Price Target Of $345
Portfolio Pulse from Anan Ashraf
Morgan Stanley analyst Adam Jonas maintains an overweight rating on Tesla Inc (TSLA) with a $345 price target. Despite Tesla's warning of lower volume growth in 2024, Jonas did not find new information in the Q4 call to change the bearish sentiment. He expects delivery growth to drop to 15% in 2024, down from 38% in 2023. Jonas cites potential AI developments and higher than expected capex as reasons not to bet against Tesla's shares. He adjusted revenue estimates for FY24 to $106 billion with a higher automotive gross profit and operating margin. Tesla shares closed down 0.6% and fell about 6% after hours.
January 25, 2024 | 3:36 am
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Adam Jonas maintains an overweight rating on Tesla with a $345 price target, despite anticipating lower delivery growth in 2024. He remains optimistic due to potential AI updates and higher capex guidance.
While the analyst expects lower delivery growth for Tesla in 2024, he maintains an overweight rating and a high price target due to potential AI developments and increased capex, which could signal continued investment in growth. The lack of new information to disrupt the prevailing bearish sentiment may keep the stock under pressure in the short term, but the analyst's continued support could mitigate some of the negative impact.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100