Tesla stock worth just $10 in worst case: Morgan Stanley
- Shares of Tesla Inc were on track for a fifth straight session of losses on Tuesday, as Morgan Stanley analysts outlined a worst case scenario that could see the electric carmaker’s stock price fall as low as $10.
Tesla’s stock, which has almost halved in value since last August, was down another 3% at $199. In the last 10 days, it has gained only once, when the company boosted prices of its Model 3 sedan last week. “Tesla has grown too big relative to near-term demand, putting great strain on the fundamentals,” wrote Jonas, rated a five-star analyst by Refinitiv for the accuracy of his forecasting on the company.
Its $1.8 billion high-yield bond due in 2025 with a 5.3% coupon weakened for a third straight day in European trading, with its price edging below 82 cents on the dollar and the yield up to 9.16% after touching a record high 9.25% overnight. It was also becoming increasingly expensive to insure Tesla bonds against the risk of default. Its credit default swap prices rose to a seven-month high on Monday and now reflect a 43% probability of default within five years, according to data from IHS Markit. That is up from around 36% earlier this month.Jonas, however, kept his equal-weight rating, a price target of $230 and also has a bull-case valuation of $391, a reflection of the split on Wall Street around the company.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Morgan Stanley: More tariffs on China could trigger a global recessionMore tit-for-tat tariffs in the U.S.-China trade war could set the global economy up for a recession, according to Morgan Stanley.
Read more »
Morgan Stanley upgrades 'retail survivor' TargetThe firm upgraded the stock to equal-weight from underweight ahead of the company's earnings on Wednesday.
Read more »
Wall Street focuses its blame for Uber’s price drop on Morgan StanleyMorgan Stanley nabbed the biggest U.S. IPO of the past five years. Now it gets to field second-guessing after Uber shares tumbled.
Read more »
Morgan Stanley is bullish on Japan, says its stocks are 'oversold and unloved'Japan's stock markets are 'oversold and unloved' — the opposite of those in the U.S., said Morgan Stanley, predicting that the Topix may jump as much as 15% by June 2020.
Read more »
Alphabet falls after Morgan Stanley warns of a short-term slumpAlphabet will be fine long-term, Morgan Stanley analysts wrote in a note Tuesday, but the stock will continue to sink in the short-term.
Read more »
9-year-old boy with type 1 diabetes surprised with life-saving diabetes alert dog9-year-old boy with type 1 diabetes surprised with life-saving diabetes alert dog.
Read more »
Morgan Freeman Converted His 124-Acre Ranch Into A Giant Honeybee Sanctuary To Save The BeesMorgan Freeman, the actor, film director and philanthropist has added a new title to his name: Beekeeper. The 81-year-old celebrity decided to convert his 124-acre Mississippi ranch into a bee sanctuary.
Read more »
JP Morgan warns 3M's troubles will continue, may cut dividend 'after 37 straight years of increase'Shares of 3M have been hit hard since the company's disappointing first-quarter earnings report.
Read more »
Four reasons why the bears are wrong about a second-half slump: J.P. MorganNeed to Know: Earnings, jobs and all the reasons stock bears are wrong
Read more »
EU fines Barclays, Citi, JP Morgan, MUFG and RBS $1.2 billion for FX riggingBarclays, Citigroup, JP Morgan, MUFG and Royal Bank of Scotland were fined a com...
Read more »