This comes from Morgan Stanley’s Adam Jonas, who cites longer-term concerns about increasing competition.
He reiterates his Equal Weight rating and $379 price target on the stock.
“We have substantially higher conviction… that the company will face greater levels of competition than the market anticipates in the domains of electric vehicles, autonomous vehicles and shared mobility,” Jonas writes.
There are even more fears:
The analyst fears TSLA “may lose its positioning in Auto 2.0 as the industry approaches a far more volatile and crowded narrative”.
Further, “Companies like Amazon (with interest in transportation) and Alphabet (with Waymo business) apply pressures.”
Jonas believes TSLA will overcome the production bottlenecks that have plagued the Model 3, but the “boost to cash flow and sentiment provides a selling opportunity” before the company faces more headwinds, which he considers inevitable.
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