Tesla Gets a Price Target Slash from Morgan Stanley

Morgan Stanley has cut Tesla’s price target from $260 to $240 a share. The firm also lowered its Model S and Model X sales forecast.

According to analyst Adam Jonas, Tesla is expected to deliver fewer vehicles in 2019, especially its high-end Model S sedan and Model X sport utility vehicle.

Jonas is concerned that negative market sentiment could have an impact on Tesla’s business. He said that this negative sentiment around Tesla’s stock also could begin to hurt the company’s actual business.

He now expects the electric vehicle maker to average 14,800 Model S and X vehicles per quarter and 287,500 Model 3 midsize sedans for the year. He expects Tesla to deliver 344,000 vehicles in 2019, which is at the low end of Tesla’s own guidance. Jonas had also previously forecast 362,000 units.

“We are increasingly concerned about the impact that investor concerns over Tesla’s financial strength and forward looking liquidity position could potentially have on employee morale, customer perceptions and standing with key stakeholders and suppliers,” said the analyst.

Disclaimer: We have no position in Tesla Inc. (NASDAQ: TSLA) and have not been compensated for this article.