Morgan Stanley analyst and Tesla Inc bull Adam Jonas recently conducted an investor survey that revealed overwhelming negative sentiment towards the EV giant’s shares. Despite this, Jonas remains bullish on the company.
The survey, which had 84 respondents, showed that three-quarters of investors believe Tesla’s stock has yet to bottom, with bears outnumbering bulls by over 2 to 1. Many investors are concerned about the dwindling EV demand narrative. Additionally, 60% of respondents expect Tesla shares to underperform compared to the S&P through the end of the year, and 75% expect the shares to bottom at or below $150.
Despite the negative sentiment from investors, Jonas continues to maintain his overweight rating on Tesla with a $345 price target. He sees Tesla as more than just an EV company, but rather as an energy, AI/robotics combined company with different segments of operations coming together to reach his price target. Morgan Stanley is eagerly awaiting Tesla’s AI Day 2024 for further updates on its AI efforts.
During Tesla’s fourth-quarter earnings call in January, CEO Elon Musk mentioned that the company had refrained from hosting another AI Day event since 2022 due to concerns about potential imitation. However, Musk also expressed openness to considering such an event this year. He emphasized Tesla’s leading position in real-world AI and stressed that Tesla is not just an automobile company but an AI and robotics company.
While Tesla is rooted in electric vehicle manufacturing, the company has diversified its business to include energy storage solutions, solar products, supercharger stations, software, and robotics. Musk has consistently rejected comparisons with other automakers, highlighting Tesla’s unique position in the market.
Overall, despite the negative sentiment from investors, Tesla continues to push forward with its innovative technology and business ventures. With a strong focus on AI and robotics, the company aims to reshape the perception of Tesla as more than just a car company. As Tesla continues to expand its offerings and reach, it will be interesting to see how the market responds to its growth and development in the coming years.
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