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Tesla Faces 'Formidable Bear Case' Over Apple's EV Plans, Says Morgan Stanley

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Tesla Faces 'Formidable Bear Case' Over Apple's EV Plans, Says Morgan Stanley

Morgan Stanley analyst Adam Jonas says Apple Inc (NASDAQ: AAPL) reportedly venturing into electric vehicles creates a new “bear case” for Tesla Inc (NASDAQ: TSLA).

The Tesla Analyst: Jonas gave Tesla a Buy-equivalent rating in a note Tuesday and assigned a price target of $540 for the stock, which is almost 15% below the stock’s closing price on Tuesday, as reported by Bloomberg.

Thet Tesla Thesis: “Apple’s potential entry into autos represents perhaps the most credible/formidable bear case for Tesla’s stock that investors have had to consider for some time,” wrote Jonas.

Apple’s foray into vehicles could spell trouble for not only the Elon Musk-led company but also traditional automakers such as Ford Motor Company (NYSE: F) and General Motors Company (NYSE: GM), as per Jonas.

Jonas theorized that Apple’s plans could mean a “significant inflection in the speed and magnitude of a wide range of investments” for suppliers of electric, autonomous, and connected-car systems, according to Bloomberg.

Tesla Price Action: Tesla shares closed nearly 1.5% lower at $640.34 on Tuesday and fell 0.94% in the after-hours session.

Related Link: Unlike Tesla, Apple's Worth Based On Lifetime Value Of Customer Base — Cramer Sees 'Upside' In EV Foray

Click here to check out Benzinga’s EV Hub for the latest electric vehicles news.

Latest Ratings for TSLA

DateFirmActionFromTo
Feb 2021Morgan StanleyMaintainsOverweight
Feb 2021Piper SandlerMaintainsOverweight
Jan 2021Deutsche BankMaintainsBuy

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