Tesla Stock Is A “Top Pick” For Morgan Stanley

[RV_]

I agree and posted about the coming year likely to be Tesla's best. I am sure some will agree others not. I am still long. If it drops much more I'll get some more to bring me to where I was with my first block on IPO.

Excerpt:

"Tesla’s stock is way down on the year, but some think the automaker could have a sizable upside in the future. Many analysts view Tesla’s low stock price as a chance to see serious value growth, including investment firm Morgan Stanley.

Morgan Stanley called Tesla one of its Top Picks for 2023 earlier this month, highlighting increasing competition and the company’s dominant position amidst a bear market, as detailed in a report from Teslarati. The firm also maintained a price target of $330, while some other analysts have dropped their own targets on Tesla’s stock.

“While we see 2023 as a challenging year for the EV market categorically, we believe Tesla’s gap to competition can widen,” wrote Morgan Stanley in a note to clients.

The news opposes recent moves by fellow investing firm Goldman Sachs, which recently cut Tesla’s stock price target from $305 to $235 on account of Elon Musk’s Twitter affairs. Still, many consider Tesla’s financial details sound, from its high earnings and profitability to its low debt compared to the competition.

Tesla named Top Pick at Morgan Stanley. Video: CNBC / YouTube

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The Morgan Stanley position is categorized by Teslarati as cautious optimism, and it comes ahead of Tesla’s plans to begin producing the Cybertruck in 2023, and on the heels of the company’s first Semi deliveries to PepsiCo. Tesla also plans to announce another factory around the end of the year, according to Musk, which recent reports allege will be unveiled in Mexico in early 2023.

Additionally, Tesla is still ramping up production at its new Texas and Berlin-Brandenburg Gigafactories, the latter of which also added an extra shift to its schedule this month. With new products and growth on the horizon, it could be a stock worth watching in the new year.

In any case, there’s no way to predict what Tesla’s stock could do in the coming months. Several analysts and Musk himself have even called the stock inflated at times, and bearish investor expectations have become common on Wall Street in recent months. However, those who already hold the stock and plan to wait out the recession could be in for long-term opportunity, while other bulls point out the low buy-in price for Tesla’s shares."

You can find the article and more here:

https://cleantechnica.com/2022/12/21/tesla-stock-is-a-top-pick-for-morgan-stanley/

Edited December 23, 2022 by RV_

[stevekk]

Thanks.  I am thinking about maybe buying stock.

I have a Chevy Bolt EV and really like it.  And understand the US gov will offer the $7500 tax credit again for various EV's, including the BOLT.   Plus my State has $2500 cash rebate = total $10,000 off.

 

[justRich]

It seems like Tesla is a big fish finding itself in a pond of piranhas. 

[RV_]

On 1/9/2023 at 6:56 AM, justRich said:

It seems like Tesla is a big fish finding itself in a pond of piranhas. 

Nah, Tesla has been down this road before. I am holding more shares than I originally had and and still in the black despite the volatility. (My shares tripled in last August's 3-1 split)

This year will be its biggest yet as the Texas and Berlin factories ramp up closer to full production. The new Shanghai factory is pumping out 1k superchargers per year according to last news last year, and other than COVID shutdown issues in China, making deliveries less fixed only from that factory, they still only have a few months wait. I am going down to test drive some 2023 Tesla models too now that the tax credits are back, and I canceled my Rivian pre-order from 2021.

Tesla is finally catching up some on wait times, this info from Tom's Guide four days ago ~ Jan 6th 2023:

Scenes from earlier in 2022 did not bode well for buying a Tesla. Wait times for a new model seemed to be pretty extreme, especially if you were hoping to get a Tesla Model X. Demand for the cars has been growing, and the company had problems keeping up — which was worsened by issues with inflation and in the supply chain.

 

Fortunately things have levelled out, for the most part. While the Model X still has wait times up to 7 months, and the Long Range Model 3 is completely missing, the majority of Tesla's line-up is more readily available. So you don't necessarily need to commit to a lengthy wait before your new car is delivered. Still the length of your wait all depends on which Tesla you’re buying, and in some cases what premium add-ons you’re ordering it with. 

Likewise the Long Range Model 3 won't be available to order until sometime later this year. When next year is completely unknown, and that doesn't account for potential wait times once orders reopen. Still, at least you're not waiting for a Tesla Cybertruck, which hasn't even started production yet.

Source with more info: https://www.tomsguide.com/reference/tesla-wait-times-how-long-it-takes-to-get-every-tesla-model

 

[RV_]

On 1/6/2023 at 11:24 AM, stevekk said:

Thanks.  I am thinking about maybe buying stock.

I have a Chevy Bolt EV and really like it.  And understand the US gov will offer the $7500 tax credit again for various EV's, including the BOLT.   Plus my State has $2500 cash rebate = total $10,000 off.

 

Musk may cut prices too if sales dip. I bought more Tesla stock at these prices, and some index funds may also be a good buy. I am however out of the market save those shares and holding case until I see which way the wind blows before I buy more stocks or funds. I am the last person to follow in stock picks but I do keep a close watch on EV developments and EV tech. Ray just sent me a very forward looking statement of an incremental advance in Solid State Batteries as an example. I am posting it here in inve3sting as it is an emerging market advance in battery tech - 10%-80% charges in 15 minutes they expect.