Adam Jonas, an analyst from Morgan Stanley, reiterated the Buy rating on Tesla (TSLA – Research Report). The associated price target was lowered to $410.00.
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Adam Jonas has given his Buy rating due to a combination of factors that highlight Tesla’s transition from a traditional automotive company to a leader in AI and diversified technologies. Despite the recent underperformance in auto deliveries, Jonas believes that this is not a significant deviation from the investment thesis for Tesla. The company is seen as evolving beyond its current challenges, with a focus on future growth driven by AI and other innovative technologies.
Jonas acknowledges the current challenges Tesla faces, such as increased competition and negative brand sentiment, which have led to a reduction in delivery forecasts. However, he maintains a positive outlook on Tesla’s long-term potential, emphasizing the company’s strategic shift towards AI and its ability to capitalize on high-margin recurring services. This strategic pivot is expected to drive future growth, justifying the Buy rating despite the near-term delivery setbacks.
According to TipRanks, Jonas is a 4-star analyst with an average return of 2.3% and a 48.88% success rate. Jonas covers the Consumer Cyclical sector, focusing on stocks such as Ferrari, Tesla, and American Axle.
In another report released yesterday, Wedbush also maintained a Buy rating on the stock with a $550.00 price target.