For the first time in seven years, Morgan Stanley has been recommending Tesla stock sales.
According to analysts, optimistic expectations for the company’s business growth in China are already fully valued in the share price.
The bank also downgraded the company’s mobility department, citing the firm’s failure to meet the legal and natural requirements for launching a robo-taxi.
From October to now, Tesla’s share price has doubled. The price also found support after surprisingly better results, good delivery data and the rapid construction of their new factory in China.
Short-term momentum and sentiment remain strong, but analysts are already beginning to doubt that this momentum will linger. The investment bank’s new target is $ 360 – up from their previous $ 250 but still down 30% from current stock levels.
Morgan Stanley isn’t the only bear against Tesla – at least 15 other analysts and companies have set a sell rating. 10 are buy and 10 are hold.
Source: Bloomberg Finance L.P.
Graphs: Used with permission of Bloomberg Finance L.P.
Trader Martin Nikolov