Tesla closed down over 9% on Monday, to $US253 per share ahead of the markets’ close.
The collapse is largely being chalked up to a note that Morgan Stanley analyst Adam Jonas published Monday, in which he reiterated an overweight rating on the stock but but expressed four “sobering factors” to consider about the stock:
1. The electric vehicle (EV) market is collapsing worldwide
2. Tesla will struggle to meet demand in China
3. Tesla isn’t going to capture the mass market
4. People won’t even buy cars in the future — and Teslas are cars!
Jonas continues to think that Tesla is worth $US320 per share, but his note is full of caution, not just about about CEO Elon Musk’s carmaker but the entire future of EVs.
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