Morgan Stanley analyst lowers price target on Tesla stock as global EV market faces oversupply
- Morgan Stanley analyst cuts price target on Tesla stock to $345
- Global EV momentum is stalling
- Tesla’s 2024 outlook expected to be cautious on volume and profitability
- Tesla reports fourth-quarter numbers on Wednesday evening
- Wall Street expects fourth-quarter earnings per share of 73 cents
- Tesla’s average analyst target price is now about $237
- Tesla stock was up 1% in premarket trading
Morgan Stanley analyst Adam Jonas has cut his price target on Tesla stock to $345 from $380, citing the oversupply in the global electric vehicle (EV) market and the stalling momentum. Jonas expects Tesla’s 2024 outlook to be cautious on volume and profitability. Despite the price cut, Wall Street expects Tesla to report fourth-quarter earnings per share of 73 cents and $3.07 for the year. However, Jonas has reduced his 2024 earnings per share estimate to $1.98 from $2.41. The average analyst target price for Tesla stock is now about $237. Despite the price cut, Tesla stock was up 1% in premarket trading.
Public Companies: Tesla (TSLA)
Private Companies:
Key People: Adam Jonas (Morgan Stanley analyst), Jeff Chung (Citi analyst)
Factuality Level: 7
Justification: The article provides information about Morgan Stanley analyst Adam Jonas cutting his price target on Tesla stock and the oversupply in the EV market. It also mentions Tesla’s upcoming fourth-quarter earnings report and provides some statistics on EV sales. However, the article lacks in-depth analysis and relies heavily on the analyst’s opinion. It also includes some unnecessary background information and does not provide a balanced perspective on the topic.
Noise Level: 3
Justification: The article provides relevant information about the price target cut on Tesla stock and the oversupply in the EV market. It also mentions the upcoming earnings report and provides some insights from the analyst. However, the article lacks scientific rigor, evidence, and actionable insights. It also dives into unrelated territories by mentioning AI and robotics optionality without further explanation or relevance to the main topic.
Financial Relevance: Yes
Financial Markets Impacted: The article provides information about the oversupply in the electric vehicle (EV) market, specifically mentioning Tesla. This could impact the financial markets related to EV manufacturers and suppliers.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the oversupply in the EV market and the impact on Tesla’s stock price. While this is a financial topic, there is no mention of any extreme events or their impact.
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