Tesla Analyst Feels Core Auto Unit Worth Only $62 Per Share But Remains 'Overweight' On Stock Amid Incoming 'EV Recession:' Here's Why
Portfolio Pulse from Anan Ashraf
Morgan Stanley analyst Adam Jonas predicts an EV market recession but maintains an 'overweight' rating on Tesla (TSLA) with a $310 price target, citing the company's potential in AI. Despite a valuation of Tesla's core auto business at $62 per share, Jonas believes Tesla will leverage the downturn to strengthen its position. He notes the broader EV slowdown, evidenced by layoffs and revised targets, and anticipates further layoffs at Tesla. Jonas also suggests legacy carmakers will significantly lower their EV ambitions, while Tesla's AI initiatives could enhance its valuation.
April 18, 2024 | 9:28 am
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Adam Jonas of Morgan Stanley maintains an 'overweight' rating on Tesla with a $310 price target, despite predicting an EV market recession and foreseeing further layoffs at Tesla. He highlights Tesla's AI initiatives as a significant factor for its potential growth.
Jonas's analysis suggests that despite short-term challenges, including an EV market downturn and potential further layoffs, Tesla's strategic investments in AI could significantly enhance its long-term valuation and market position. The 'overweight' rating and $310 price target reflect a bullish outlook on Tesla's ability to navigate the EV recession and capitalize on its AI initiatives, potentially leading to stock price appreciation.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100