Analysis Report | Why has the target price for Tesla been significantly lowered?
Morgan Stanley has lowered Tesla's target price by 9% to $345, citing that Tesla will face more challenges this year! However, based on the latest closing price, this means that the stock still has a 65% upside potential!
Overnight, Tesla fell more than 1%. Earlier, Morgan Stanley significantly lowered its target price for Tesla!
Specifically, the bank lowered Tesla's target price by 9% to $345, down from $380, citing that Tesla will face more challenges this year!
Based on the latest closing price, this means the stock still has a 65% upside potential!
Morgan Stanley stated that the company is adjusting its valuation of Tesla due to potential troubles in the future.
Market supply exceeds demand. We expect a cautious outlook for Tesla's sales and profitability prospects in 2024.
We are lowering Tesla's non-GAAP earnings per share for the 2024 fiscal year to below $2. The development of electric vehicles is challenging, but we remain optimistic about the potential of artificial intelligence and robotics technology.
Tesla will announce its fourth-quarter earnings on January 24th (Wednesday). We hope to provide performance expectations for the 2024 and 2025 fiscal years in advance.
Increasing evidence suggests that the global electric vehicle market is facing an unfavorable imbalance between supply and demand (growth).