Market Overview

Morgan Stanley: Tesla Investors Have A Profit-Taking Opportunity

Morgan Stanley: Tesla Investors Have A Profit-Taking Opportunity
Related TSLA
Freight.Tech25: In Spite Of Rocky Year, Tesla Shocks The World And Places Third
Citron Research: Nio Is 'Tesla Deja Vu'
Tesla Stellar Run Limits Further Upside (Seeking Alpha)

After a string of missed targets, Tesla Inc (NASDAQ: TSLA) could finally be on the brink of getting its Model 3 production on track. One Wall Street analyst sees the milestone as a great opportunity to sell the stock.

The Analyst

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

The Thesis

Reaching production targets is the first step in a long journey for Tesla, and there’s simply not enough visibility to recommend buying the stock at the moment, Jonas said in a Friday note. (See the analyst's track record here.) 

Improving cash flow numbers and the potential to hit near-term Model 3 targets should give Tesla a sentiment and share price boost, the analyst said. 

“Where we have substantially higher conviction on the Tesla story is our longer-term thesis that the company will face greater levels of competition than the market anticipates in the domains of electric vehicles, autonomous vehicles and shared mobility,” Jonas said. 

Jonas named four major long-term risks to Tesla’s business for investors to consider: 

  •, Inc. (NASDAQ: AMZN) may end up a competitor to Tesla in the businesses of transport, trucking and logistics.
  • Waymo, the auto unit of Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) is leading the pack of AV competitors, logging more than 5 million test miles. Waymo expects to have an AV fleet deployed by the end of 2018, potentially beating Tesla to the market by five years.
  • Global EV infrastructure will require 10 to 20 years and “many trillions of dollars” to construct.
  • China may prove a challenge for Tesla due to increasing regulation of foreign companies collecting data on Chinese drivers.

Price Action

Tesla stock traded was down nearly 1 percent Friday and is now down 5.2 percent in the past six months.

Related Links:

Elon Musk's Thoughts About China, Tariffs And Import Duties: 'Like Competing In Olympic Race Wearing Lead Shoes'

Gene Munster: Tesla Could Add Billions In Revenue With Ride-Sharing

Photo by Brett Hershman. 

Latest Ratings for TSLA

Oct 2018Canaccord GenuityMaintainsHoldHold
Oct 2018JMP SecuritiesInitiates Coverage OnMarket Outperform
Oct 2018MacquarieInitiates Coverage OnOutperform

View More Analyst Ratings for TSLA
View the Latest Analyst Ratings

Posted-In: Adam Jonas Morgan StanleyAnalyst Color Short Ideas Price Target Reiteration Analyst Ratings Trading Ideas Best of Benzinga


Related Articles (AMZN + GOOG)

View Comments and Join the Discussion!

Latest Ratings

View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
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.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Wild Ride: Net Element Rallies 70% After Jon Najarian Joins Its Board

What The Toys 'R' Us US Liquidation Means For Toy Makers