Quarterly results: Tesla shares over $ 2,000? Morgan Stanley Analyst Announces Bull Scenario for Tesla | message
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Bull predicted $ 2,070 stock price scenario
• Lower risk and financial strength
• China sales, ailing industry and competitive situation as a source of risk
Possible bull scenario for the Tesla share
After the release of Tesla’s production and delivery figures in early July, Morgan Stanley’s Adam Jonas raised its long-term price target for Tesla paper from $ 650 to $ 740, MarketWatch reported. In addition, he announced a possible bull scenario in which the Tesla share could reach a value of $ 2,070. Previously, he had expected a bull scenario in which the stock was trading at $ 1,200, which was already exceeded significantly after the electric car manufacturer’s delivery figures were announced. In the course of the revaluation, Morgan Stanley had now expected 6 million vehicle deliveries by 2030 and an EBITDA margin of 20 percent. If this scenario occurs, the company would be among the best luxury automobile manufacturers, said Jonas. The constant revaluation of Tesla shares is happening at such a high speed, even for Tesla, since the share price has been climbing higher and higher in recent days.
Quarterly figures with good results
According to Jonas, Tesla’s production figures in the second quarter of 2020 were significantly above Morgan Stanley’s expectations, as this period included the climax of the corona crisis and the associated economic consequences. For example, Tesla had been seen as the market leader for electric vehicles and the car of the future even before the pandemic, but after the publication of the latest figures, the company was considerably less risky and financially stronger, especially in comparison to other automobile manufacturers. With higher demand, Tesla has a very strong, demarcating quality feature compared to its competitors, Jonas continues. Although the group had high costs due to its working capital, the manufacturer of electric vehicles was above its break-even point in the second quarter.
Residual risks remain
Already in June, Morgan downgraded Stanley Stanley Tesla, according to Reuters, and warned investors against treating the company too much like a technology company after the shares rose above $ 1,000. Jonas still has these concerns, as he now stated. Long-term concerns particularly affect profits in China, the poor position of the automotive industry in general, and the inevitable competition with large companies such as Amazon, Apple and Google in the field of electric cars and autonomous vehicles. These issues are not taken seriously by market participants, he warned. After the figures were announced, the Tesla share was on the upswing. This year alone, the unit certificate has already increased significantly more than 200 percent.
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