Written by Cláudio Afonso | LinkedIn | X
Morgan Stanley analyst Adam Jonas published a new research note on Monday, reaffirming an Overweight rating and a $310 price target on Tesla shares. The firm has nominated the stock its “New Top Pick” in the U.S. automotive sector.
In his comments, Jonas noted that cost-cutting measures and restructuring efforts have mitigated downside risks to Tesla’s EV business.
Tesla’s second-quarter results were within 3-4% of consensus expectations (and ahead of Morgan Stanley’s own) when excluding restructuring charges and regulatory credits.
The company led by Elon Musk recognized over $0.6 billion in restructuring charges in the quarter. These, along with other actions, have helped lower the breakeven point, allowing Tesla to generate positive cash flow at the enterprise level, even with EV capacity utilization at 69% last quarter.
Jonas pointed out that while Tesla continues manufacturing cars, the company is aggressively redeploying incremental resources, technology, people, and capital away from the auto side of the business.
“We found it notable that Ford management spent far more time on its 2Q conference call discussing EVs than Tesla did,” the analyst wrote.
Speaking virtually at the “X Takeover” event held on Sunday, Tesla CEO Elon Musk hinted that the upcoming Roadster model will be able to fly.
Musk added that a demo will take place “sometime next year” adding that it “will be mind-blowing”.
Last week, Tesla reported its second-quarter earnings results, and as expected, CEO Elon Musk updated owners, enthusiasts, and shareholders on multiple topics, including the Robotaxi.
Initially scheduled for August 8 (8/8), Musk announced during the earnings conference call that the event will now take place on October 10 (10/10). He explained that the additional two months will allow the company “to show off a few other things.”
“I requested what I think is an important design change to the front, and the extra time allows us to show off a few other things,” Musk said.
Written by Cláudio Afonso | LinkedIn | X
