Morgan Stanley (Morgan Stanley) analyst Adam Jonas said in a report that the US electric car maker Tesla (TSLA-US) may be facing an oversupply issue, and the company’s share price may come under pressure in 2023.
The report pointed out that the demand for electric vehicles has come to a sudden stop recently, the waiting time for new electric vehicles is getting shorter and shorter, and the price is gradually falling. Electric car maker Lucid (LCID-US) is facing order cancellations by customers, and Rivian (RIVN) has stopped taking pre-orders.
Jonas said that with the launch of electric vehicles by many car manufacturers, the number of electric vehicles has increased significantly. This is the first time since the auto industry transitioned to electrification that there has been an oversupply situation.
However, Jonas kept his price target on Tesla at $330 per share because Tesla remains the leader in electric vehicles. He believes that the United States will provide a $7,500 tax credit for the purchase of locally-made electric vehicles, as well as the upcoming mass production of the Cybertruck, which will help to be a bullish factor for Tesla’s stock price.
However, Goldman Sachs analyst Mark Delaney lowered his price target on Tesla to $235 from $305, while lowering his forecast for fourth-quarter deliveries to 420,000 from 440,000.
Delaney also forecast total Tesla deliveries of 1.85 million vehicles by 2023, down from a previous estimate of 1.95 million and Wall Street analysts’ average estimate of 2 million.
Tesla stock has been one of the worst performers among major automakers and technology companies this year, with investors largely concerned that Elon Musk’s focus on Twitter may not be able to run Tesla effectively, while Musk may Dump more Tesla stock to prop up the faltering social media platform.