Welcome to Extreme Investor Network, where we bring you the latest insights and analysis on all things investing. Today, we want to dive into the world of Tesla and its recent performance in the market.
Morgan Stanley recently issued a report suggesting that despite Tesla’s long-term potential, the company may have further to fall in the near-term. The report, authored by Tesla bull Adam Jonas, highlights that the core auto earnings are being revised down, which could impact how investors view Tesla as an AI company. In fact, Jonas has a bear case of $100 for Tesla, indicating a potential 40% decline from the current price.
While Tesla has faced challenges in recent months, with competition in China and declining demand, Jonas remains optimistic about the company’s future. He sees Tesla as not just an auto company, but also an energy, AI, and robotics stock. In fact, he believes that Tesla’s auto business only represents 20% of its overall valuation target of $310.
Despite the short-term challenges, Jonas expects Tesla to rebound, with deliveries potentially bottoming out in the second quarter. He points to the recurring revenue opportunities from the Tesla fleet and other plays that are not currently factored into the valuation target. With a revised price target of $310, Jonas believes that Tesla could see an 84% gain over the next 12 months.
At Extreme Investor Network, we believe in looking beyond the headlines and analyzing the underlying factors shaping the market. Stay tuned for more updates and insights on investing in today’s dynamic environment.
