Tesla +3% after bearish takes wadded up by BofA, Morgan Stanley

Aug. 14, 2020 8:35 AM ETTesla, Inc. (TSLA)TSLABy: Clark Schultz, SA News Editor224 Comments
  • Bank of America lifts Tesla (NASDAQ:TSLA) to a Neutral rating from Underperform as it notes the company's unfettered access to low-cost capital, which is seen likely to be leveraged into accelerating growth.
  • "It is important to recognize that the higher the upward spiral of TSLA’s stock goes, the cheaper capital becomes to fund growth, which is then rewarded by investors with a higher stock price. The inverse of this dynamic is also true, and it is this self-fulfilling framework that appears to explain the extreme moves in TSLA stock to the upside and downside," writes John Murphy.
  • Murphy says BofA remains skeptical that TSLA will be the dominant EV automaker in the long run, however sees the growth story carrying the day for the stock.
  • Meanwhile, Morgan Stanley lifts Tesla to Equal Weight from Underweight and increased its base case price target to $1,360. "Tesla has been assembling assets/tech/people to put them in position to potentially unveil a vertically integrated battery supply business that resets the industry cost curve," updates analyst Adam Jonas. The firm pushes out a bull case and bear case scenario with each of its ratings updates, which pulls some of the punch from its upgrade/downgrade/
  • Perhaps a surprise, but Tesla stacks up pretty well in the automobile sector on Quant Rating comparison with a score higher than Volkswagen, Ford and Toyota.
  • Shares of Tesla are up 3.15% in the premarket session to $1,672.00.

Recommended For You

Comments (224)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.