Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Adam Jonas On Model 3: ‘Most Auto Launches Have Hiccups, Tesla Is No Exception’

Courtesy of Benzinga.

Adam Jonas On Model 3: 'Most Auto Launches Have Hiccups, Tesla Is No Exception'

Tesla Inc (NASDAQ: TSLA) bears scored the latest victory in the Tesla saga this week when the company reported just 260 Model 3s produced in the third quarter after previously guiding for 1,500. But while Tesla shares dropped another 2 percent Tuesday and are now down 7.4 percent in the past three months, one quarter’s production number may not be as important as many bears would like it to be.

Morgan Stanley analyst Adam Jonas said Tuesday that, while the Model 3 number is certainly a “hiccup” in the Tesla story, these types of delays are par for the course when it comes to vehicle launches.

Instead of focusing on one bad production month, Jonas says investors should be focusing on the quality and market reception of the Model 3, which is critical for Tesla’s future as a company. Morgan Stanley is projecting 120,000 Model 3 deliveries in 2018.

tipranks.png

For now, Jonas said the Q3 number will have no impact on Tesla’s ability to raise the cash it needs to continue building up its infrastructure. But Tesla still has a lot to prove in the long run. Jonas said the company will need to demonstrate that it can generate positive free cash flow, something that Morgan Stanley doesn’t expect to happen until 2019.

At the same time, Jonas said Tesla’s current share price reflects a bit too much optimism.

“TSLA remains a rather expensive call option on disrupting transport and energy, but will (and should) attract serious competition over time — the stock is trading just over our assessment of fair value,” Jonas wrote.

Morgan Stanley maintains an Equal-Weight rating and $317 price target on Tesla.

Related Link: Here It Is: Your Tesla Q3 Deliveries Preview

_______

Image Credit: By Smnt (Own work) [CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0)], via Wikimedia Commons

Latest Ratings for TSLA

Date Firm Action From To
Sep 2017 Jefferies Initiates Coverage On Underperform
Sep 2017 Barclays Maintains Underweight
Sep 2017 Deutsche Bank Maintains Hold

View More Analyst Ratings for TSLA


View the Latest Analyst Ratings

Posted-In: Analyst Color Price Target Reiteration Travel Top Stories Analyst Ratings Tech General Best of Benzinga


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!