Morgan Stanley issued an upbeat report on Thursday (29th), saying that the recent sell-off has created an attractive entry point for Tesla, which is expected to expand its lead in the electric car race. Motivated, Tesla’s stock price soared more than 8% on Thursday, continuing its rebound.
Tesla shorts have earned $15 billion this year, but Tesla bulls still insist on their beliefs. Morgan Stanley analyst Adam Jonas released a report that Tesla is expected to expand its lead over competitors in 2023.
Jonas mentioned: “Tesla’s sell-off is the result of increasingly unfavorable supply and demand in the electric vehicle market, and this situation is exacerbated by technical factors. It is expected that 2023 will be the “restart” year of the electric vehicle market, and the supply shortage of the past 2 years will be reversed. For oversupply.”
Jonas wrote: “It is in this environment that Tesla can thrive. A business like Tesla that is self-funded, has considerable scale and relatively low costs throughout the supply chain, may be A relative winner.”
Jonas judged that compared with other competitors, Tesla’s stock price plunge has created an attractive entry point. Tesla will also be the biggest potential winner when the tax credits of the Act will hit the road on January 1 next year.
Jonas reiterated Tesla’s “overweight” stock rating, but lowered Tesla’s target price from $330 per share to $250 per share to reflect the market’s downward revision of Tesla’s valuation.
Tesla (TSLA-US) soared 8.08% to $121.82 per share on Thursday, the best single-day performance in five months, and closed in red for two consecutive trading days.
Even with the rebound, Tesla’s stock price still plummeted by regarding 38% in December, and has fallen by 69.54% this year. It is expected to record the largest single-month decline since its listing in 2010, the first annual loss in seven years, and the largest annual loss in Tesla’s history. loss.
