Logo
Friday, 29 March 2024
Friday, 12 Jun 2020 07:00 pm

Tesla at $1,000: too much too soon for some analysts

Top Wall Street brokerages Goldman Sachs and Morgan Stanley downgraded their ratings on Tesla Inc saying the electric carmaker’s shares were overpriced, two days after the high-flying stock crossed $1,000 per share.

newsImage
 

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

Top automakers including General Motors Co and Ford Motor Co have doubled down on their investments in the space by offering more electric vehicles, aiming to cash in on a sector that is touted as the most promising alternative to conventional cars.

“We highlight risks to Sino-U.S. trade, near-term demand, capital needs and tech competition as the key bear vectors we think deserve more attention,” Morgan Stanley analyst Adam Jonas said in a note on Friday.

Morgan Stanley cut its rating to “under-weight”, joining 12 other brokerages who recommend selling the stock.

Following Goldman Sachs’ downgrade to “neutral”, Tesla now has 12 analysts with a “hold” rating, and nine brokerages recommending “buy” or higher.

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

Read here


Neha Pandey

Aware of her elements, Neha writes the best articles across industries including electronics & semiconductors, automotive & transportation and food & beverages. Being from the finance background she has the ability to understand the dynamics of every industry and analyze the news updates to form insightful articles. Neha is an energetic person interested in music, travel, and entertainment. Since past 5 years, she written extensively on sectors like technology, finance and healthcare.


Smarter Decisions with Smart News

Smart Market News is committed to getting its readers the latest updates and insights on industries that help in making “smarter” business decisions. With insights and inputs from corporate decision makers, we bring you the stories of adopting innovative solutions and strategies that have been changing the world. Our editorial insights on products, solutions, companies, and adoption of best practices not only help in understanding the markets better, but also prove to be a complete package for your information needs.

Subscribe to our newsletter
Get the latest in your inbox weekly Sign up for the fully charged newsletter
© The News and Media Division of The Insight Partners 2024 | All Rights Reserved | Privacy Policy