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!

Tesla Going Through A “Rather Dry Spell”, Says Morgan Stanley’s Adam Jonas

Courtesy of ZeroHedge View original post here.

In most respects, the latest note from Adam Jonas at Morgan Stanley on Tesla has been more of the same.

You've got your bona fide comedy, as Jonas starts his note by saying "Let’s begin with a healthy dose of intellectual honesty on the starting point for the stock," before defending his $900 price target on the name…

You've got your "pie in the sky" style lofty estimates about a SaaS revenue stream that doesn't exist and that the company likely doesn't even have the infrastructure for…

You've got your insane valuation for Tesla's insurance business…

…and finally, you've got your proclamation that Tesla is going to exceed its timelines for autonomous productions. You know, because the company has been so masterful with handling timelines in the past. 

All told, it was a pretty standard Adam Jonas ticker tape parade for the company.

But tucked into what can only be described as the "endless optimism" of Jonas' note was an interesting point that the analyst made. Namely, he appears to make the suggestion that CEO Elon Musk's latest obsession with bitcoin is indicative that Tesla's underlying business could be going through a "dry spell".

"Over the past couple of months, incoming client interest on Tesla is focused mostly on Chinese sales/production data and Elon Musk’s tweets regarding Bitcoin. Might Tesla-Bitcoin fever may be telling us something about the lull in Tesla sentiment?" Jonas asks toward the beginning of his note.

He continues: "You just know it’s a rather dry spell for Tesla when Bitcoin is the dominant new story and dominant driver of investor discussion day in, day out. In our opinion, what’s considerably more interesting than ‘decoding’ the TSLA-Bitcoin relationship is the fact that there is a virtual ‘vacuum’ of developments and news related to other areas of technological and commercial progress that the company is involved with on renewable energy, storage networking and transportation."

He begrudgingly concludes about Tesla's underwhelming Model S Plaid unveil: "Yes, the Model S Plaid unveil was fun, but where’s the next ‘big’ development to move the company forward?"

The lines even stood out CNBC's Carl Quintanilla who pointed it out early this morning.

It's interesting to note this level of what appears to just be bemusement and exhaustion from Jonas. But whether or not it sticks out to the "sophisticated investors" buying Tesla stock remains another question…


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!