Morgan Stanley (Rank #1 Analyst) Cuts Tesla’s Valuation

Stock Market Update June 14th, 2024

Tesla Stock Analysis

Morgan Stanley & Co. (Analyst Rank #1) has just lowered the 12 month target on Tesla’s stock to $310 from $320 per share. The analyst slight valuation reduction is based on the recent weak first-quarter update, which signals an ongoing phase of consolidation and adjustment in the electric vehicle (EV) market. Despite this, Morgan Stanley maintained an optimistic outlook on Tesla’s stock, affirming its “Overweight” rating and emphasized Tesla’s substantial potential as a beneficiary of artificial intelligence (AI) technologies.

However, they caution that Tesla must address and stabilize the current trend of negative earnings revisions within its automotive segment. Until Tesla can demonstrate consistent positive earnings in its core automotive business, it may not receive full recognition as an AI company. The analysts anticipate that this process of improving earnings could take several more quarters. Morgan Stanley’s team maintains the perspective that Tesla operates not only as an automotive company but also as a significant player in the energy, AI, and robotics sectors. Despite short-term challenges, they believe in Tesla’s long-term prospects across multiple industries, reinforcing their confidence in the company’s potential for growth and innovation.

TSLA Stock Analysis

Based on forecasts from 28 analysts, the average target price for Tesla Inc. stock over the next 12 months is USD 236.09. The consensus among analysts is a “Buy” rating for Tesla’s stock. Stock Target Advisor’s own analysis of Tesla Inc. indicates a “Slightly Bullish” sentiment, supported by 9 positive signals and 5 negative signals.

At the most recent closing, Tesla Inc.’s stock price stood at USD 168.38. Over the past week, the stock price has experienced a decline of -6.37%, while over the past month, it has decreased by -16.91%. Looking back over the last year, Tesla’s stock price has fallen by -13.55%.

These figures provide insight into market sentiment and analyst expectations regarding Tesla’s performance and potential future trajectory. Despite recent declines in stock price, the overall outlook from analysts and stock analysis platforms remains positive, with expectations of potential growth in the long term.

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