Will Tesla’s stock fall to Zero
2022.12.29 07:08
Will Tesla’s stock fall to Zero
Budrigannews.com – Tesla shares (NASDAQ:) organized a minor skip yesterday following a few days of serious selling pressure. As sell-side analysts continue to urge their clients to purchase shares amid a significant pullback, Tesla stock is further up about 3.5 percent in pre-market Thursday.
Analysts at Morgan Stanley are the most recent to note that a selloff in Tesla stock has opened up a buying opportunity. They maintained their Overweight rating for Tesla stock and decreased the price target from $330 to $250.
In a client note, the analysts stated, “We believe Tesla may be in position to extend its lead vs. the EV competition in FY23 (both legacy and start-up) even before consideration of IRA benefits where Tesla also stands out as the biggest potential winner.”
They reiterated their previous position that the market for electric vehicles (EVs) will likely experience a “reset” in 2023 due to anticipated supply outstripping demand.
“We believe players that are self-funded (not reliant on external capital funding) with demonstrated scale and cost leadership throughout the value chain (from manufacturing to up-stream material supply) can be relative winners in this environment,” they added.
More Apple shares may collapse after Tesla-analysts
As Tesla’s stock approaches Morgan Stanley’s new bear case of $80 per share, analysts see an appealing entry point. The prior bear case scenario predicted that shares of Tesla stock would cost $150. The previous model implied a 30% discount to Morgan Stanley’s bear case considering that Tesla shares traded for around $105 per share prior to market on Wednesday.
Due to lower Q4 delivery estimates, the price target has been lowered. Analysts at Morgan Stanley now anticipate that Tesla will sell about 399 thousand units, which is about 30 thousand less than the consensus.
Yesterday, the price of Tesla stock reached $112.71.
