Tesla (TSLA) Stock: $1,200 Target And Overweight Rating

By Amit Chowdhry ● Jun 26, 2022
  • The shares of Tesla Inc (NASDAQ: TSLA) have received a $1,200 price target from Morgan Stanley. These are the details.

The shares of Tesla Inc (NASDAQ: TSLA) have received a $1,200 price target from Morgan Stanley. And Morgan Stanley analyst Adam Jonas is maintaining an “Overweight” rating on the shares.

Jonas adjusted the rating after reducing the Q2 volume forecast to 270,000 units from 316,000 and reduced the FY22 volume forecast to 1.39 million units from 1.425 million previously. And Jonas also cited that the estimates from EV-Volumes.com have Tesla delivering 254,200 units in the second quarter, but Jonas allowed some upside in the estimates given the historic ability of Tesla to significantly increase production and sales in the late weeks of a quarter. 

Plus Jonas explained that the 50 basis point increase in weighted average cost of capital accounts for approximately 100% of the price target decline. And Jonas said he would buy Tesla shares on any weakness on a potentially weak second-quarter print. 

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