Tesla (NASDAQ:TSLA) shares have been red-hot recently, surging 80% since bottoming out on January 3. That is a big change in sentiment compared to last year. It should be noted that Tesla’s year-to-date gains exceed those of its smaller competitors such as Lucid, and by some distance the returns generated by shares of Rivian and Fisker. However, despite the quick rise in share price, one Tesla bull’s conviction was unwavering.
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Morgan Stanley’s Adam Jonas has repeatedly banged the drum for Tesla, and currently rates the shares as Overweight (i.e. Buy), backed by a $220 price target. (To watch Jonas’s track record, click here)
With Jonas thinking Tesla will keep on driving the per-unit BOM (bill of materials) cost “significantly lower,” he anticipates “consolidation” amongst competing EV players. And as happened in the auto industry more than a century ago, a “similar shake-out” is taking place. So, bad news for the smaller EV fish, but no worries there for Tesla, essentially.
There’s also the upcoming March 1st Investor Day to look forward to, where Elon Musk and Co. will reveal part 3 of the Master Plan. “We’re excited to see progress on the manufacturing side including giga-press (front and rear), 4680 battery pack, structural pack and other innovations (including in supply chain, up-stream material sourcing and mining),” Jonas said in anticipation of the event.
However, elsewhere, Jonas takes a more cautious approach. Sentiment wise, following a period of huge trading volume, he notes that as the price has increased recently, there has been a “sharp decline in incoming call volume from clients on Tesla.”
So, that’s Morgan Stanley’s view, what does the rest of the Street have in mind? Based on 21 Buys, 6 Holds, and 3 Sells the stock has a Moderate Buy consensus rating. However, after soaring so high this year, the analysts see limited upside ahead, considering the average price target stands at $199.78. (See Tesla stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
