Tesla at $ 1000: too early for some analysts


FILE PHOTO: The Tesla logo is visible at a branch in Bern, Switzerland, March 25, 2020. REUTERS / Arnd Wiegmann

(Reuters) – Top Wall Street brokerage firms Goldman Sachs and Morgan Stanley lowered their ratings on Tesla Inc (TSLA.O) saying that the shares of the electric manufacturer were too expensive, two days after the title of high flight crossed the 1000 dollars per share.

Brokerages, while reiterating that their long-term view of the stock remains positive, noted that the current valuation underestimates the risks, including increased competition in the electric vehicle industry.

The best automakers, including General Motors Co (GM.N) and Ford Motor Co (F.N) have doubled their space investments by offering more electric vehicles, with the aim of taking advantage of a sector presented as the most promising alternative to conventional cars.

“We highlight the risks to China-US trade, short-term demand, capital needs and technological competition, as we believe the main bear carriers deserve more attention,” an analyst said on Friday. by Morgan Stanley, Adam Jonas.

Morgan Stanley lowered its rating to “underweight”, joining 12 other brokerages that recommend selling the stocks.

After the downgrade of Goldman Sachs to “neutral”, Tesla now has 12 analysts with a “hold” rating and nine brokerages recommending “buy” or more.

The bar for the automaker’s fundamentals is higher, Goldman analyst Mark Delaney said on Thursday while raising the target price to $ 950 from $ 925.

Morgan Stanley lowered its price target on Tesla stocks to $ 650 from $ 680, in line with the median price target, according to Refinitiv data.

Tesla’s shares, which have jumped 360% in the past twelve months, have declined nearly 1% in pre-market trading.

Reports by Tanvi Mehta and Munsif Vengattil to Bengaluru; Editing by Shounak Dasgupta

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