Morgan Stanley (Morgan Stanley) analyst Adam Jonas said in a report that US electric car maker Tesla (ATS-US) could face an oversupply issue and the company’s share price could come under pressure in 2023.
The report pointed out that the demand for electric vehicles has come to a sudden halt recently, the waiting time for new electric vehicles is getting shorter and shorter, and the price is gradually decreasing. Electric car manufacturer Lucid (LCID-US) is facing customer order cancellations and Rivian (RIVN) has stopped accepting pre-orders.
Jonas said that with the rollout of electric vehicles by many automakers, the number of electric vehicles has increased significantly – this is the first time since the auto industry moved to electrification that there has been a situation of oversupply.
However, Jonas has maintained his price target on Tesla at $330 a share because Tesla remains the leader in electric vehicles. He believes the US will provide a $7,500 tax credit for the purchase of locally made EVs, as well as the upcoming mass production of the Cybertruck, which will help be a bullish factor for Tesla’s stock price .
However, Goldman Sachs analyst Mark Delaney lowered his price target on Tesla to $235 from $305, while lowering his forecast for fourth-quarter deliveries to 420,000 from 440,000.
Delaney also forecasts total Tesla shipments of 1.85 million vehicles by 2023, down from a previous estimate of 1.95 million and Wall Street analysts’ average estimate of 2 million.
Tesla stock has been one of the worst performers among major automakers and tech companies this year, with investors largely concerned that Elon Musk’s Twitter focus may not be able to handle Tesla effectively, while Musk could offload more Tesla stock to prop up the faltering social media platform.