Tesla shares at emerging peak?

By BLOOMBERG

NEW YORK • Tesla Inc could be at an “emerging peak” in both sentiment and share price, according to Morgan Stanley, which reiterated its equal-weight rating and US$291 (RM1,216) price target on the electric-car company.

Shares rose as much as 1.4% pre-market before paring gains.

“While we acknowledge the significance of Tesla’s very strong third-quarter (3Q18) result, we do not believe investors will assume the company is fully self-sufficient without a more sustained period of execution,” analyst Adam Jonas wrote to clients.

“We continue to harbour concerns over whether Tesla will be able to achieve sustainable access to foreign markets, particularly in China, but also in the European Union.

“We view 4Q18 as the transition from stage 1 to 2, and believe it marks an emerging peak in sentiment and potentially the share price.

“A wide range of complex events could influence the ultimate direction of Tesla’s stock price.

“Tesla has a bull case price target of US$441 and bear case target of US$97.”