Market Overview

Tesla In 2018: Morgan Stanley Predicts An 'Extremely Volatile' Year

Tesla In 2018: Morgan Stanley Predicts An 'Extremely Volatile' Year

Between its solar segment, battery business and diverse auto units, Tesla Inc (NASDAQ: TSLA)’s equilibrium rests multiple variables.

The firm is the paragon of diversification, but its guiding principle hasn't shielded it well from instability. Some on the Street expect Tesla's automotive exposure to trigger imminent stock volatility.

The Rating

Morgan Stanley analyst Adam Jonas maintains an Equal Weight rating on Tesla with a $379 price target.

The Thesis

Jonas expects Tesla’s stock to strike $400 in the near term before potentially falling below current values to the low $300s. (See Jonas' track record here.) 

“We expect Tesla shares to be extremely volatile in 2018, divided into two stages: (1) The alleviation of production bottlenecks with strong cash inflow and (2) mounting concerns over the sustainability of the competitive moat,” Jonas said in a Tuesday note. 

The first phase predicted by Morgan Stanley assumes Tesla’s baked-in scaling flexibility and ability to accrue early ramp working capital through favorable payment negotiations with eager suppliers. The latter is marked by mounting competition from autonomy-focused tech firms and in global markets.

“Admittedly, we cannot be precise with the timing of positive (1H) and negative (2H) catalysts that could move the stock significantly in the quarters ahead, leaving us EW on the stock,” Jonas said. 

Price Action

At the time of publication, Tesla was trading up 2.39 percent at $316.14. 

Related Links:
Elon Musk Takes Another Shot At Tesla Short Sellers, Calls Them ‘Jerks Who Want Us To Die’
Wall Street Weighs In On Tesla Semi, Roadster Unveiling

Photo courtesy of Tesla. 

Latest Ratings for TSLA

Oct 2019DowngradesMarket OutperformMarket Perform
Sep 2019Initiates Coverage OnBuy
Jul 2019ReiteratesUnderweight

View More Analyst Ratings for TSLA
View the Latest Analyst Ratings

Posted-In: Adam Jonas Morgan Stanley TeslaAnalyst Color Price Target Reiteration Top Stories Analyst Ratings Best of Benzinga


Related Articles (TSLA)

View Comments and Join the Discussion!

Latest Ratings

FTVMorgan StanleyMaintains70.0
ROKMorgan StanleyMaintains142.0
WWEFBN SecuritiesUpgrades100.0
SWNCapital One FinancialUpgrades
AEISCowen & Co.Downgrades57.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

For Nvidia, Gaming Trends Could Make 2018 Another Standout Year

Mid-Afternoon Market Update: Dow Gains 180 Points; DSW Shares Drop On Earnings Miss