Analysts confident in Tesla stock rebound

US investment bank Morgan Stanley remains bullish on Tesla shares despite recent turmoil and concerns over Elon Musk’s approach.

Business Insider reported that in a recent client note, longtime Tesla advocate Adam Jonas lowered his price target on the shares by $250, down from $330 previously. But despite the mea culpa, his new forecast still sees a 122% rise from the close on Wednesday last week.

Jonas offered two main reasons for his optimistic outlook. Tesla will extend its current lead against EV competitors and will also see the benefits of the Cut Inflation Act. Addressing Tesla’s more than 65% drop in 2022, including a 40% drop in December alone, Jonas stopped short of blaming CEO Elon Musk’s concern over Twitter, something a growing chorus of critics have pointed to as a problem. major loss factor. Instead, he attributed it to supply exceeding demand for the first time since the Covid-19 pandemic and a variety of “technical factors.”

The past two years of demand exceeding supply will be substantially reversed for supply to exceed demand,” Jonas wrote.

“Within this environment, we believe that players that are self-financing (not dependent on external capital financing) with demonstrated scale and cost leadership along the value chain (from manufacturing to upstream materials supply) ) can be relative winners,” he added.

termometro.economico@eleconomista.mx