- Morgan Stanley is out with a fresh note on Tesla Motors (NASDAQ:TSLA) as its factors in some of the revelations on the Model X into the equation.
- The typically-effusive MS team cuts its Model X delivery forecast for 2016 to 20K units and to 34K units for 2017, due in part to the high sticker price. The drop in volume will be partially offset by a higher average transaction price, although Morgan thinks Tesla will need to explore alternative EV mobility models to plug the revenue gap.
- Looking further out, the combined volume forecast (Models S, X, and 3) for 2020 is set at 287K by MS, compared to the 500K projection from Tesla.
- The price target on Tesla is reduced by Morgan Stanley to $450 from $465 based on the new Model X forecast.
- Shares of Tesla are down 2.77% to $239.33, which is pretty close to the mid-point of the 52-week trading range of $181.40 to $286.65.