Tesla Stock Price Drops on Analyst Report

Tesla shares took a downturn on Tuesday after one of the company’s strongest supporters on Wall Street issued a cautious report regarding Tesla’s growth. 

The report, which contains “four sobering facts to consider” about Tesla, caused the shares to drop by 9.1 percent, or by $25.43 to $253.86 a share.

Adam Jonas, an analyst with Morgan Stanley, wrote in his report that electric vehicles have been “failing categorically” around the world. He also warned that growth in China may be limited and that technological breakthroughs are needed for EVs to become mainstream.

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“We are big believers in Tesla’s strategy and stand firmly by our claim that it is the world’s most important car company,” Jonas wrote. “But we do not expect the stock to appreciate so consistently and one-directionally from here.”

Tesla shares have already gained 69 percent this year, and even CEO Elon Musk has been quoted saying “the share price was a bit ahead of itself.”

[Source: Automotive News]

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