Morgan Stanley analysts lifted their bull-case price target for Tesla Inc. to $2,070 after an “extraordinary” rally saw the stock overshoot a previous best-case scenario of $1,200. But they still don’t recommend buying Tesla shares.
After better-than-expected delivery numbers in an “extremely difficult” second quarter for the auto sector, Tesla now appears less risky than other carmakers, analyst Adam Jonas said.
“Tesla has demonstrated one very powerful differentiating quality versus many of its auto peers: demand is holding up better,” Jonas wrote in a report to clients, noting that quarterly volume fell only 5% versus a year ago. By comparison, General Motors Co., Fiat Chrysler Automobiles NV, Toyota Motor Corp. and Nissan Motor Co. all saw U.S. sales drops of at least 34% in the quarter.
