Watching shares of Tesla trade in the public markets has been interesting, to say the least. It is incredibly volatile with drastic swings in either direction.
Simply put, all it needs is for the wind to blow and it's moving in a BIG way.
This is why I have absolutely nothing to do with the equity. It is not based in any reality of fundamentals.
Having said that, there's still quite a few individuals playing the game. Many institutional investors are still short. Many retail investors are long. Shares of Tesla ended 2019 priced at $418.75.
And an analyst from Morgan Stanley is predicting that there will be a shift of perception that will bring the stock crashing down to $250/share. Adam Jonas foresees that investors will understand that Tesla isn't actually a technology company and it is simply an automotive manufacturer. Jonas notes that MS is prepared for a bullish 1H 2020 but that he does not believe it will be sustainable, resulting in an approximate 40% reversal that coincides with his $250/share price target.
What say you, Spies? Where do you forecast shares will wind up in 2020?
In the midst of a fourth-quarter surge that launched Tesla’s stock past CEO Elon Musk’s $420 per share takeout value, Morgan Stanley reiterated its $250 price target on the company.
Tesla is currently trading at an outsized value for an autos manufacturer, Morgan Stanley analyst Adam Jonas said in a note published Monday. The analyst said that investors will eventually cease to view Tesla as a tech company and send the stock plummeting to levels comparable to others in the autos industry.
Morgan Stanley has an equal-weight rating on Tesla’s stock. Jonas’ $250 price target would slash Tesla’s market cap from $75 billion as of Monday’s market close to about $45 billion, marking a 40% cut...
Read Article