Adam Jonas at Morgan Stanley on Wednesday upped his price target on Tesla Inc. (TSLA) shares as well as a "bull case scenario" price, saying that for the first time in his 10 years tracking the Silicon Valley company he's modeling it to become "a very, very large auto maker." He increased the price target to $1,050, from $740, representing a 30% downside to Wednesday's price, and the "bull case" to $2,500, from $2,000. He kept his rating on the stock at the equivalent of sell. The bull case is "plausible," with concerns around a possible over-dependency on China, underestimating legacy auto makers and overestimating timing for autonomous vehicles, among others, he said. Jonas also tweaked higher his "bear case" estimate to $375 from $281. "Our forecasts give Tesla credit for continuing to attract world's best talent at the industry's lowest-priced cost of capital," he said. Shares of Tesla have gained 265% this year, compared with gains under 1% for the S&P 500 index and contrasting with a loss around 7% for the Dow Jones Industrial Average in the same period. Tesla reported a surprise second-quarter profit last week. ( )
-Claudia Assis; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
July 29, 2020 11:17 ET (15:17 GMT)
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