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Morgan Stanley cuts Tesla price target and lowers Model S and Model X sales forecast

Morgan Stanley cut its Tesla appraisal target Monday, saying it expects the automaker to deliver fewer vehicles in 2019, especially its high-end Model S sedan and Plus ultra X sport utility vehicle.

Tesla shares were up nearly 1 percent Monday in morning trading. The stock has ruined more than 17 percent of its value since the beginning of the year.

Apart from declining deliveries, cancelling sentiment around Tesla’s stock also could begin to hurt the company’s actual business, Jonas judged.

“We are increasingly concerned about the impact that investor concerns over Tesla’s financial strength and forward looking liquidity circumstances could potentially have on employee morale, customer perceptions and standing with key stakeholders and suppliers,” he said.

Jonas now thinks Tesla to deliver 344,000 vehicles in 2019, which is at the low end of Tesla’s own guidance and down from Jonas’ previous anticipation of 362,000 units. He expects Tesla to deliver an average of 14,800 Model S and X vehicles per quarter and 287,500 Model 3 midsize sedans for the year.

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