Morgan Stanley warns that Tesla (NASDAQ:TSLA) may have hit an "air pocket" of demand that prompted the Model 3 price cut.
Analyst Adam Jonas and team cut the Q1 Tesla deliveries forecast by 23% to factor in "sluggish" U.S. sales and potential impediments to international deliveries. "We are not inclined to buy now as we don’t believe we’d be compensated for the amount of risk we’re taking. The potential longer-term 'resolution' of the Tesla story as we approach nine years after its IPO may require a few more chapters to play out," writes Jonas.
MS now sees 2019 EPS of $1.30 vs. $4.17 prior and 2020 EPS of $6.69 vs. $10.22 prior. The firm's new price target on Tesla is $260 vs. $283 prior.
Shares of Tesla are down 1.40% in premarket trading to $286.36.
Now read: Tesla: Model Y Hail Mary »
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