Tesla could be a value stock by the time the Twitter turmoil fades - Morgan Stanley
Justin Sullivan

Morgan Stanley warned that Elon Musk's ownership of Twitter could affect some consumers' sentiment regarding Tesla (NASDAQ:TSLA), but also thinks that weakness could create an opportunity for investors.
For the near term, analyst Adam Jonas thinks bearish sentiment momentum on Tesla (TSLA) may not let up.
"While it is not possible to quantify any potential impact on Tesla shares, we note that the risk is clearly top of mind from our discussions across a range of investors."
The bearish sentiment on TSLA is also related to decelerating electric vehicle demand and price cuts in some markets like China, as well as the general valuation reset in the market amid higher interest rates. Jonas and team think it could all add to Tesla (TSLA) shares testing the firm's $150 bear case before the end of the year. That would put Tesla at 12.5X EV/EBITDA and 23X 2025 price-to-earnings - a level Morgan Stanley said would provide excellent value for a self-funded, 20% to 30% top-line grower in a top position to benefit from onshoring trends in the renewable supply chain industry.
Morgan Stanley still has an Overweight rating on Tesla and price target of $330, which is more than 70% higher than the current trading level. The 52-week high on TSLA is $402.67.
Read the latest breakdowns on Tesla from Seeking Alpha authors.