Tesla looks to notch record 14th straight gain
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Tesla (NASDAQ:TSLA) is looking to see the longest winning streak for shares in its history extend after running 13 straight days of gains. The rally has seen shares return back to a trading level last seen in early October of last year.
On Wall Street, Morgan Stanley analyst Adam Jonas noted the sustained rally is not tied to upward earnings revisions. Jonas and team still believe the prevailing pattern of events for Tesla (TSLA) is continued price deflation amid intensifying competition with Chinese EV players and a slowing auto consumer.
However, Morgan Stanley has a forward-looking bull case price target of $390 that $194 per share for the core auto business, $55 per share for Tesla Energy, $48 per share for Network Services, $40 per share for EV/Battery 3rd party supply, $37 per share for Tesla Mobility/Ride Sharing. and $16 per share for Tesla Insurance.
"As the stock approaches the $300 level, we think it begins to discount a business based on recurring software-derived/software-delivered revenue (i.e. SAAS) from its vehicle network and other services beyond just the 1-time sale of automobiles. While we did not expect this recent rally in the companyâs shares, we suspect many investors may be again looking at ways to justify the valuation beyond the confines of a unit x price automotive/hardware model."
Tesla (TSLA) showed a small gain of 0.11% at 12:56 p.m. TSLA is up 139% on a year-to-date basis.
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