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Morgan Stanley Pours Cold Water On Tesla Rally, Calls Share Price "Excessive"

• https://www.zerohedge.com, Tyler Durden

But such was the case Friday morning when Jonas called the recent move higher in Tesla shares "excessive" given the company's earnings and demand headwinds this year. 

Jonas wrote in his note that the stock is discounting volume of roughly 4 million units by 2030 by pricing the stock at nearly $750. Jonas' price target of $440 is based on slightly more than 2 million units, he noted.

Jonas was quick to point out that investors view Tesla's valuation as reasonable because they are comparing it to megacap technology stocks. He warned that investors need to consider significant inherent differences between Tesla's business model and the capital intensive nature of the business. 

He concluded his note by reminding readers that Tesla faces execution risk to many of its business objectives that could be higher than many mature companies.

He didn't, surprisingly, mention the Elon Musk/Covid-19 public relations sh*tshow that has been unfolding over the last couple of weeks. For example, yesterday we pointed out that Musk reportedly had only made donations to hospitals fighting the virus if they would thank him publicly on social media.