Morgan Stanley has dropped Tesla's price target to $380, but predicts 2.25M car deliveries in 2024 and emphasizes the potential for partnerships and expansion beyond the auto industry
Questions to inspire discussion
What is Morgan Stanley's new price target for Tesla?
—Morgan Stanley has dropped their Tesla price target to $380.
What does Adam Jonas forecast for Tesla in 2024?
—Adam Jonas forecasts 2.25 million car deliveries for Tesla in 2024.
What factors are impacting Tesla's profitability and cash flow?
—Tesla's profitability and cash flow are being impacted by energy and services.
What potential partnerships does Tesla have beyond the auto industry?
—Tesla has the potential to expand sales through advertising, leveraging captive finance tools, and potentially lowering prices, with a 2024 forecast of 2.25 million units.
What are the potential challenges for Tesla in expanding beyond China?
—Potential challenges in expanding beyond China for Tesla include tariffs and trade protectionist measures.
- 💡 The sum of the parts evaluation of Tesla is becoming a more understood and broader theme among analysts and the market.
- 📈 "Tesla is not an auto company. It's an energy company just wait till next year when the margins of energy is going to surpass Tesla when the revenue is going to get to be meaningful."
- 💰 Leasing is a crucial lever for sales, and Tesla has the opportunity to double, triple, or quadruple their leasing activities to scale accordingly.
- 💼 The forecast for 2024 expects Tesla to reach 2.25 million units, indicating a strong growth trajectory for the company.
- 🚗 Tesla's exception in China as a catalyst for the new energy market is a game-changer and could lead to potential partnerships with international companies.
- 🌍 Morgan Stanley predicts Tesla will establish partnerships and gigafactories in multiple countries outside of China, potentially dominating the global auto market.
- 💰 Morgan Stanley's price target for Tesla is $380, with $86 of that based on the auto business and $48 on energy, giving credit to the energy sector.
- 📈 Morgan Stanley calls Dojo as a service software as a service, which accounts for 30% of the stock valuation, showing a huge impact on Tesla's future.
#Investment #Tesla #AdamJonas
00:00 📉 Morgan Stanley drops Tesla price target to $380, predicts 2.25M car deliveries in 2024 but warns of price cuts and falling margins, emphasizing partnerships and potential beyond auto industry.
- Adam Jonas from Morgan Stanley forecasts 2.25 million car deliveries for Tesla in 2024, but predicts price cuts and falling margins, while also emphasizing Tesla's partnerships with world leaders to expand gigafactories and secure battery mineral supplies.
- Morgan Stanley has dropped their Tesla price target to $380, citing the challenging auto market as a key factor.
- Analysts are starting to understand that Tesla should not be viewed solely as an auto company, and the stock will be driven by factors beyond hardware and supply chain.
- Tesla's profitability and cash flow are being impacted by energy and services, and institutional analysts are finally catching on to the company's potential beyond 2024.
04:06 📉 Tesla's low leasing activity could be expanded to increase market share, with potential for increased sales through advertising and financing tools, leading to a 2024 forecast of 2.25 million units.
- Adam Jonas from Morgan Stanley discusses Tesla's low leasing activity and the potential for Tesla to increase leasing to expand their market.
- Elon Musk is cautious and conservative when it comes to financial markets and taking on debt for leasing agreements.
- Tesla has the potential to expand sales through advertising, leveraging captive finance tools, and potentially lowering prices, with a 2024 forecast of 2.25 million units.
07:50 📉 Tesla's average transaction prices and auto gross margins are expected to decrease, but expansion in energy and services may offset the reduction in operating margin, with caution advised due to potential supply chain disruptions from wars in Europe and the Middle East.
- Institutional analysts are expecting a reduction in average transaction prices and a decline in auto gross margins for Tesla, which the speaker believes is a good thing and aligns with their own predictions.
- Tesla may see a reduction in operating margin due to the expansion of lower-priced vehicles and limits on government support for non-gas vehicles, but there may be offsets in expanding margins in energy and services.
- Caution is advised due to ongoing wars in Europe and the Middle East potentially disrupting the supply chain.
11:03 📉 Morgan Stanley drops new TSLA forecast for 2023, highlighting potential challenges in expanding beyond China, but also discussing potential partnership with BYD in battery technology and other areas.
- Morgan Stanley discusses BYD's higher sales and deliveries in their Tesla note.
- Morgan Stanley drops new TSLA forecast for 2023, with ongoing promotion campaigns and solid overseas sales, but potential challenges in expanding beyond China due to tariffs and trade protectionist measures.
- Byd is a great company with tight margins, but Tesla far outsells them in terms of dollars and growth, and the future lies in the European and American markets for Chinese manufacturers like byd.
- Tesla's role as a catalyst in the Chinese new energy vehicle market may lead to a potential partnership with byd, but it would be a complicated one.
- Tesla and BYD could potentially partner in battery technology and other areas, as they see each other as potential collaborators rather than competitors.
16:57 🚗 Morgan Stanley predicts Tesla will expand globally with partnerships and gigafactories in multiple countries, including potential investment in Italy, and sees Tesla as the top competitor in the global auto market.
- Morgan Stanley predicts Tesla will establish partnerships and gigafactories in various countries outside of China, with potential investment in Italy, and sees Tesla as the leading competitor in the global auto market.
- Tesla has potential in India, Australia, and South America, with China being able to absorb all of the megapack production.
19:28 📉 Morgan Stanley drops new TSLA forecast with $380 price target, attributing value to auto business, energy, insurance, mobility, and potential partnerships, while speaker sees significant opportunity with Optimus.
- Morgan Stanley's forecast for Tesla includes a price target of $380, with a significant portion of that value attributed to the auto business, energy, insurance, mobility, and potential partnerships in powertrain and other areas.
- The speaker believes that the opportunity with Optimus in Tesla is significant and larger than indicated by analysts.
21:56 📈 Morgan Stanley predicts 30% increase in Tesla stock, with potential for Dojo service and software partnerships, new revenue streams from energy, AI, robo taxi, and insurance.
- Morgan Stanley predicts a 30% increase in Tesla stock valuation within one year, with the possibility of Dojo service and software partnerships happening sooner than expected.
- Tesla's plan for Dojo and Training Services will likely result in product announcements and services, but revenue from this area may not be seen this year.
- New revenue streams from energy, AI, robo taxi, and insurance will contribute to Tesla's revenue within the next few years.
24:58 💡 By the end of next year, all of these lines will be well established, and in 2025, Morgan Stanley's note on Tesla is worth checking out on herbert.com.
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