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Tesla price target cut by Morgan Stanley

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Tesla’s (NASDAQ: TSLA) price target was cut by Morgan Stanley, a firm that has had a bullish outlook on the automaker’s stock for several years.

In a new note to investors released this morning, Morgan Stanley analyst Adam Jonas reduced the firm’s price target to $320 from $345, with the main thesis of the writing being concerned with EV demand.

“EV demand continues to decelerate despite continued price cuts,” Jonas wrote. “Fleets are dumping EVs and strong hybrid momentum is competing for the marginal EV buyer. Could Tesla lose money (sometime) this year?”

Jonas makes several points throughout the note, including Tesla’s aging product lineup, oversupply in key markets, and increasing demand for hybrids.

Tesla’s Aging Product Lineup

We have discussed this point of view in the past, and it’s hard to agree with it. While Tesla has had the same four vehicles in its lineup for several years now, the automaker has done nothing different than any other automaker in terms of refreshing and introducing new designs.

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In the past, we’ve discussed how the Honda Civic has gone through generational changes every 4-7 years. Tesla has made routine changes to the Model S and Model X in that same timeframe, the Model Y is only a few years old and rumoredly in the process of a refresh with Project Juniper, and the Model 3 just received a complete overhaul via the Highland refresh.

I drove the new Tesla Model 3, here’s what got better

Not to mention, the Cybertruck has been on the market for less than six months.

“Aging” is a tough word to use in order to describe this lineup correctly. It is hard to even consider it stale. While Tesla is working with a vehicle lineup that has been around for a few years, updates and refreshes are happening regularly.

Jonas mentions that Tesla’s lineup “may be the oldest of any major OEM,” but with the Cybertruck just launching and Model 3 just recently getting an in-depth overhaul, it is difficult to agree.

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Oversupply in Key Markets

Jonas specifically mentions China here, and for good reason. Tesla is still very popular in China, but there are simply more affordable options, and consumers may not be able to justify spending three or four times the money.

In order to get back to its competitiveness, Tesla will need to launch a vehicle at this sort of price point, which would fall between $15,000 and $25,000.

What is going on in China is something Tesla could encounter in the United States in 5-10 years. Eventually, more companies will have EVs out there, and not everyone will want to pay a premium. Of course, Tesla plans to launch the next-gen platform sometime in 2025, so it is also a possibility that the company completely averts this situation in North America.

Hybrid Demand Increases

Hybrid sales increased five times faster than EVs last month, Jonas writes in the note. Some consumers may look at the best of both worlds for their next car, and hybrids may fit the bill of what they want. As someone who drove a Ford Escape Hybrid for seven years, it offered a lot of positives, including better fuel economy than the same model in an ICE version.

Jonas believes that Toyota will outpace any major automaker in the U.S. this year in terms of growth due to its focus on hybrid powertrains.

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Price Target

Jonas reduced Tesla’s price target to $320 from $345.

“Our thesis on Tesla is that it is both an auto stock + an energy, AI/robotics company … Negative developments in the global EV market very much matter to Tesla and should reasonably have a negative near-term impact on the price of the stock. At the same time, however, we believe investors should not ignore the continued developments of tesla’s other plays,” Jonas writes.

While the firm reduced its price target to $320, it also believes that Tesla will not “get credit as an AI company as long as core auto earnings are being revised down.”

This makes it seem like the “$100 bear case may be in play,” Jonas said.

Disclosure: Joey Klender owns Tesla stock.

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I’d love to hear from you! If you have any comments, concerns, or questions, please email me at . You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at .

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

Elon Musk

Tesla called ‘biggest meme stock we’ve ever seen’ by Yale associate dean

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Credit: Tesla

Tesla (NASDAQ: TSLA) is being called “the biggest meme stock we’ve ever seen” by Yale School of Management Senior Associate Dean Jeff Sonnenfeld, who made the comments in a recent interview with CNBC.

Sonnenfeld’s comments echo those of many of the company’s skeptics, who argue that its price-to-earnings ratio is far too high when compared to other companies also in the tech industry. Tesla is often compared to companies like Apple, Nvidia, and Microsoft when these types of discussions come up.

Fundamentally, yes, Tesla does trade at a P/E level that is significantly above that of any comparable company.

However, it is worth mentioning that Tesla is not traded like a typical company, either.

Here’s what Sonnenfeld said regarding Tesla:

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“This is the biggest meme stock we’ve ever seen. Even at its peak, Amazon was nowhere near this level. The PE on this, well above 200, is just crazy. When you’ve got stocks like Nvidia, the price-earnings ratio is around 25 or 30, and Apple is maybe 35 or 36, Microsoft around the same. I mean, this is way out of line to be at a 220 PE. It’s crazy, and they’ve, I think, put a little too much emphasis on the magic wand of Musk.”

Many analysts have admitted in the past that they believe Tesla is an untraditional stock in the sense that many analysts trade it based on narrative and not fundamentals. Ryan Brinkman of J.P. Morgan once said:

“Tesla shares continue to strike us as having become completely divorced from the fundamentals.”

Dan Nathan, another notorious skeptic of Tesla shares, recently turned bullish on the stock because of “technicals and sentiment.” He said just last week:

“I think from a trading perspective, it looks very interesting.”

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Nathan said Tesla shares show signs of strength moving forward, including holding its 200-day moving average and holding against current resistance levels.

Sonnenfeld’s synopsis of Tesla shares points out that there might be “a little too much emphasis on the magic wand of Musk.”

Elon Musk just bought $1 billion in Tesla stock, his biggest purchase ever

This could refer to different things: perhaps his recent $1 billion stock buy, which sent the stock skyrocketing, or the fact that many Tesla investors are fans and owners who do not buy and sell on numbers, but rather on news that Musk might report himself.

Tesla is trading around $423.76 at the time of publication, as of 3:25 p.m. on the East Coast.

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Elon Musk

Elon Musk affirms Tesla commitment and grueling work schedule: “Daddy is very much home”

The remarks came as Tesla shares crossed the $400 mark on the stock market.

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Tesla CEO Elon Musk reiterated his commitment to the electric vehicle maker and its future projects this week, responding to speculation following his $1 billion purchase of TSLA stock. 

The remarks came as Tesla shares crossed the $400 mark on the stock market, extending a rally fueled in part by Musk’s TSLA purchase.

Elon Musk’s nonstop work schedule

Amidst the reaction of TSLA stock to Musk’s $1 billion investment, Tesla owners such as @greggertruck noted that “Daddy’s home.” Musk replied, stating that “Daddy is very much home.” He then shared details of a packed weekend of work, which was definitely grueling but completely within character for a “wartime CEO.”

Musk did note, however, that he had lunch with his kids during the weekend despite his extremely busy schedule.

“Daddy is very much home. Am burning the midnight oil with Optimus engineering on Friday night, then redeye overnight to Austin arriving 5am, wake up to have lunch with my kids and then spend all Saturday afternoon in deep technical reviews for the Tesla AI5 chip design. 

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“Fly to Colossus II on Monday to walk the whole datacenter floor, review transformers and power production (excellent progress), depart midnight. Then up to 12 hours of back-to-back meetings across all Tesla departments, but with a particular focus on AI/Autopilot, Optimus production plans, and vehicle production/delivery,” Musk wrote in his post

Wartime CEO

Wedbush analyst Dan Ives described Musk as operating in “wartime CEO mode,” highlighting autonomous driving and AI as a trillion-dollar market opportunity for Tesla. Musk reiterated this point late last month as well, when he outlined the several projects he is juggling among his numerous companies. At the time, Musk stated that he was busy with Starship 10, Grok 5, and Tesla V14. This was despite his notable presence on X. 

With Tesla Master Plan Part IV being partly released, the company is entering what could very well be its most ambitious stage to date. To usher in an era of sustainable abundance, Tesla would definitely require a “wartime CEO,” someone who could remain locked in and determined to push through any obstacles to ensure that the company achieves its goals.

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Elon Musk

Tesla analyst says Musk stock buy should send this signal to investors

“With Musk’s (Tesla stock) purchase, combined with the upward momentum for delivery expectations and robotaxi rollout, we are becoming more bullish.”

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(Credit: Tesla)

Tesla CEO Elon Musk purchased roughly $1 billion in Tesla shares on Friday, and analysts are now breaking down the move as the stock is headed upward.

One of them is William Blair analyst Jed Dorsheimer, who said in a new note to investors on Monday that Musk’s move should send a signal of confidence to stock buyers, especially considering the company’s numerous catalysts that currently exist.

Elon Musk just bought $1 billion in Tesla stock, his biggest purchase ever

Dorsheimer said in the note:

“With Musk’s (Tesla stock) purchase, combined with the upward momentum for delivery expectations and robotaxi rollout, we are becoming more bullish. This purchase is Musk’s first buy since 2020. To us, this sends a strong signal of confidence in the most important part of Tesla’s future business, robotaxi.”

Musk putting an additional $1 billion back into the company in the form of more stock ownership is obviously a huge vote of confidence.

He knows more than anyone about the progress Tesla has made and is making on the Robotaxi platform, as well as the company’s ongoing efforts to solve vehicle autonomy. If he’s buying stock, it is more than likely a good sign.

Tesla has continued to expand its Robotaxi platform in a number of ways. The project has gotten bigger in terms of service area, vehicle fleet, and testing population. Tesla has also recently received a permit to test in Nevada, unlocking the potential to expand into a brand-new state for the company.

In the note, Dorsheimer also touched on Musk’s recent pay package, revealing that William Blair recently met with Tesla’s Board of Directors, who gave the firm some more color on the situation:

“We recently participated in a meeting with Tesla’s board of directors to discuss the details of Musk’s performance package. The board is confident of its position in the Delaware case and anticipates a verdict by end of year. It does not expect a similar situation to occur under new Texas jurisdiction. Musk has the board’s full support, and we expect he’ll get more than enough shareholder support for this to pass with flying colors.”

Tesla stock is up over 6 percent so far today, trading at $421.50 at the time of publication.

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