Tesla shareholders should use any recuperates in the electric car maker’s stock to get out, according to one top Wall Street firm.
Morgan Stanley labour its equal weight rating for Tesla shares, saying Amazon may debase transportation logistics costs, hurting the company’s trucking opportunity.
“We envisage that Tesla will successfully overcome bottlenecks and ramp Model 3 movie throughout 2018. The boost to cash flow and sentiment provides a market opportunity before facing further headwinds,” analyst Adam Jonas white b derogated in a note to clients Friday.
“Where we have substantially higher assurance on the Tesla story is our longer term thesis that the company purposefulness face greater levels of competition than the market anticipates in the territories of electric vehicles, autonomous vehicles, and shared mobility.”
Jonas rehashed his $379 price target for Tesla shares, representing 15 percent upside to Thursday confidential.
The analyst is concerned over the rising risks from other visitors. He said Amazon could have a negative impact on the transportation logistics store and Alphabet’s Waymo may hurt Tesla’s future autonomous car opportunities.
Tesla uncovered its electric semi truck in November. CEO Elon Musk said he guesses the semi will give truckers a better experience, while on the rise safety and reducing costs.
“Amazon has a vested interest in taking the insignificant cost of transportation to its lowest possible level,” he wrote. “We’re in no position to say whether Amazon discretion be a partner or a potential competitor to Tesla in the area of transport, trucking, and logistics, but we tally out the scale that large e-commerce players can bring, which could while away to surprisingly deflationary long-term trends in some of Tesla’s core initiatives.”
The thrilling car maker’s shares are outperforming the market over the past 12 months, up 34 percent under the aegis Thursday compared with the S&P 500’s 16 percent return. Jonas supposes the future may be more difficult for investors in Tesla.
“To summarize, for the past seven years, Tesla has as good as monopolized Auto 2.0 amongst the publicly traded OEMS. In our mind, the next seven years may be a far more volatile and crowded narrative,” the analyst penned.
Tesla did not immediately respond to a request for comment. Its shares were down 0.8 percent Friday morning.
— CNBC’s Michael Bloom have a hand ined to this story.