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Tesla Woes Make It a ‘Restructuring Story,’ Morgan Stanley Says
- Analyst Adam Jonas says bear case for shares is just $10
- Stock closed Wednesday at the lowest since December 2016
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A Wall Street analyst who had a price target of $379 on Tesla Inc. a little more than a year ago held a private call with investors Wednesday to elaborate on why he thinks the stock may now be headed for as low as $10.
“Tesla was seen as a growth story,” Morgan Stanley analyst Adam Jonas said on the call, a recording of which was obtained by Bloomberg News. “Today, supply exceeds demand, they are burning cash, nobody cares about the Model Y, they raise capital and there’s no strategic buy-in. Today, Tesla is not really seen as a growth story. It’s seen more as a distressed credit and restructuring story.”