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Despite poor sentiment, Morgan Stanley still sees Tesla stock price doubling

Published 28/03/2024, 15:38
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Despite the pressure on Tesla (NASDAQ:TSLA) shares, Morgan Stanley analysts maintained an Overweight rating and a price target on the stock at $320 in a note this week.

The bank cut its first-quarter Tesla deliveries forecast to 425,000 vs. 469,400 previously.

"We mark to market our 1Q delivery forecast to 425k (0.6% y/y growth) to reflect latest channel checks (China data, EV Volumes) ahead of likely April 1st release," said the firm. "FY24 deliveries lowered to 1,954k vs. 1,998k previously (8.1% y/y growth)."

"Tesla recently announced price increases starting April 1. We forecast a slightly lower ATP decline in FY24 – at $42.5k (-4.6% y/y) vs. $42.1k (-5.5% y/y) previously," they added.

For earnings, Morgan Stanley lowered its adjusted earnings per share forecast to $0.24 from $0.29 previously, while its FY24 EPS forecast is unchanged at $1.51.

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