Tesla shedding $600B of value presents buying opportunity, says Morgan Stanley

Morgan Stanley analyst Adam Jonas notes that Tesla (TSLA) has shed $600B of market value in "just" three months and contends that as the "ambassador" of EVs, this valuation decline "raises questions for investment returns and capital formation across the sector." Tesla’s price cuts started in China and he expects them to quickly spread to the U.S. and Europe, said Jonas, who argues that lower EV prices are important for the next leg of mass adoption, but also notes that they "depress the returns of many of the companies expected to compete against Tesla." He anticipates Ford’s (F) "Model e" unit will "clearly display that legacy EVs are not profitable today" when it has results disclosed in Q1 of 2023, added Jonas. To conclude, Jonas says that he views this pullback in Tesla shares as a buying opportunity and reiterates his Overweight rating and $330 price target on Tesla shares.