Morgan Stanley auto analyst Adam Jonas has released an intriguing new note Tesla after attending one of the company’s bull/bear lunches. His key takeaways? Sentiment towards the electric vehicle pioneer seems to have taken a decidedly bearish turn.
The lunch attendees – a mix of Tesla bulls and bears – expressed doubts that Tesla’s sales will see any growth at all in 2024. Most predict consensus estimates will fall, with coveted full self-driving capabilities likely remaining “off the table” for now. Despite this gloomy outlook from Tesla observers, Jonas himself remains overweight on the stock, seeing over 80% upside from current levels. However, Tesla’s brand perception appears concerningly “mixed” in Morgan Stanley’s latest survey.
So why does Jonas stubbornly maintain his bullish stance even as chatter around Elon Musk’s darling turns decidedly negative? He argues that the potential rewards from a Tesla investment remain “compelling” compared to others in the auto industry. Still, with Tesla facing its “most challenging year” ever in 2024 by Jonas’ own admission, can sheer upside potential continue justifying the stock’s towering valuation?
Especially worrying are the survey results indicating deteriorating faith in the Tesla brand itself – the crown jewel behind Musk’s empire. With Tesla’s detractors convinced the stock will sorely underperform over both 6 month and 1 year timeframes, it appears the sharks are circling, eagerly awaiting any sign of weakness.
Can Elon Musk pull yet another miraculous recovery with Tesla as he did with SpaceX, or will 2024 finally mark reality catching up with his electric vehicle grand vision? What shocks and surprises does Tesla still have up its sleeve? With Tesla’s passionate bulls and bears spearheading the conversation, we’re guaranteed a riveting debate as the company’s fate hangs in the balance.