US EditionTesla Shares Slip After Morgan Stanley Downgrade
Analyst Andrew Percoco raised Tesla's price target to $425 but downgraded the stock due to high valuation at 30 times 2030 EBITDA, expecting a 6% downside.
- On Friday, Morgan Stanley exited the bull camp on Tesla in a huge, potentially market-moving call, citing valuation concerns and downgrading the stock to equal weight, despite raising the price target by $15 to $425.
- Valuation metrics showed that Percoco wrote Tesla trades at 30 times Morgan Stanley's EBITDA estimate for 2030, and he said he would `wait for a better entry.`
- Notably, Percoco wrote that `Tesla is a clear global leader in electric vehicles, manufacturing, renewable energy, and real world AI and thus deserving of a premium valuation,` while shares gained over 12% this year but underperformed the S & P 500 and Nasdaq.
- The downgrade immediately puts Percoco at odds with most Wall Street analysts, and Morgan Stanley had held an overweight rating on Tesla since September 2023.
- After the coverage transition from Adam Jonas, Percoco warned of a "choppy trading environment" for Tesla over the next year, signaling cautious near-term expectations.
18 Articles
18 Articles
Why Morgan Stanley cut its Tesla stock rating from for the first time in 2 years
Tesla CEO Elon Musk previously said that the company's Full Self-Driving Supervised software will "nag" drivers less often.Annegret Hilse/ReutersTesla stock fell on Monday after shares were downgraded by Morgan Stanley. Analyst Andrew Percoco moved it from a "buy" to a "hold" rating.It is the first downgrade Tesla has received from Morgan Stanley since June 2023.Tesla stock got a downgrade on Monday, sending it tumbling as much as 4% as Morgan S…
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Tesla’s sky high valuation prompts Morgan Stanley to cut rating
Elon Musk is eager to transform Tesla Inc. into a robotics and artificial intelligence company, but the electric-vehicle maker's stock price already reflects those businesses and is at a "full valuation" according to Morgan Stanley.
Tesla Shares Slip After Morgan Stanley Downgrade
Tesla shares slipped more than 4% on Monday after Morgan Stanley cut its rating on the stock to Equal-weight from Overweight, even as the firm raised its price target to $425 from $410. With Tesla changing hands around $455 into the move, the new target implies modest downside and a more balanced risk-reward profile in the eyes of the bank’s analysts. The downgrade also coincides with a notable change in coverage leadership. Longtime Tesla watch…
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