Analysts from Morgan Stanley and Goldman Sachs have downgraded Tesla’s stock, citing the recent surge beyond $1,000, citing risks between the company and China.
Morgan Stanley analyst Adam Jonas downgraded TSLA to underweight and cut the target price to $650 US from $680, saying the current price over $1,000 might not take into account rising risks with “many of them long-term, that have the potential to impact fundamentals (growth and profitability) in a materially negative way,” reports The Street.
Jonas cited U.S.-China relations “at the very top” of risks that could impact the electric automaker.
As for Goldman Sachs, analysts from the firm downgraded Tesla to neutral, as the recent price run beyond $1,000 US was above the recent 12-month price target of $950 US.
“We’d look to become more positive on Tesla stock again if we had more confidence in the near to intermediate term trajectory in fundamentals, or if valuation became more attractive,” said Delaney.
Shares of TSLA closed out Friday’s trading day ending at $935.28, down 3.86%, after hitting $1,025 on Wednesday, on the ‘leak’ of a memo from CEO Elon Musk citing the new ‘all out’ volume production of Tesla Semi to begin soon.
