Tesla: Morgan Stanley now sets 'bear case' at 10 dollars

(CercleFinance.com) - Morgan Stanley has moved its "bear case" target on Tesla from 97 dollars to 10 dollars on Tuesday, triggering a new round of selling on the shares of the Californian electric carmaker.


In a note to clients, the US brokerage firm cites the company's increased debt load, geopolitical exposure, and demand that has become increasingly dependent on China.

However, the reduction in its bear case target is driven primarily by concerns around Chinese demand for Tesla products, MS said.

"Our revised bear case assumes Tesla misses our current Chinese volume forecast by roughly half to account for the highly volatile trade situation in the region," it said.

These negative comments have added to other bearish calls made by analysts over the last few days.

Yesterday Tesla shares fell by 7.6%, dropping for the first time under the 200-dollar mark since the end of 2016, after Wedbush mentioned "major concerns" around the trajectory of Tesla's growth prospects and demand on Model 3.

The shares are down 3.7% at 197.6 dollars today.

Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.