Tesla’s (TSLA) is slipping below $1,000 per share after achieving the milestone, as Morgan Stanley and Goldman Sachs are now both downgrading the automaker.
As we reported earlier this week, Tesla’s stock resumed its pre-pandemic run to reach $1,000 per share and become the world’s most valuable automaker.
The stock couldn’t hold the valuation, and it has now been set back to ~$934 per share as Morgan Stanley issued a new note about Tesla:
In a post-COVID world, we believe fewer and more powerful players will be in position to deploy capital and talent to solving autonomy with a ‘play to win’ mind-set.
They specifically mentioned Amazon as a potential competitor in autonomous driving following rumors that the online retailer is looking to buy a company in the space.
Morgan Stanley downgraded Tesla’s stock to an “Underweight rating” and reduced its price target to $650 from $680.
Although, as we previously reported, Morgan Stanley maintains a wide range of price targets on Tesla now ranging between $190 and $1,200.
Morgan Stanley analyst Adam Jonas is ranked No. 710 out of 6,667 Analysts on TipRanks with a success rate of 50% and an average return of 7.5%. He recommended to sell Tesla’s stock during the last major run-up before switching to an equal weight rating and now downgrading it:
Goldman Sachs also downgraded their rating of Tesla’s stock, but it is more due to the fact that they had upgraded it to $950 and it is now trading higher.
Analyst Mark Delaney commented:
We’d look to become more positive on Tesla stock again if we had more confidence in the near to intermediate term trajectory in fundamentals, or if valuation became more attractive.
They maintain their price target on Tesla’s stock, but they downgraded it to “neutral.”
Goldman Sachs analyst Mark Delaney is ranked No. 1,946 out of 6,667 analysts on TipRanks with a success rate of 58% and an average return of 3.9%.
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