Morgan Stanley, a renowned Wall Street investment bank, has forecasted that Tesla might face a deficit this year due to intensifying price competition.
In a report released on the 6th (local time), Morgan Stanley pointed out that price competition is escalating in China, the world’s largest electric vehicle market. Global rental car companies like Hertz are selling off their electric vehicles because customers are avoiding them due to long charging times. Morgan Stanley warned that this could lead to a crisis in the electric vehicle market and result in Tesla incurring a loss this year.
Morgan Stanley also lowered its target price for Tesla from $345 to $320.
Adam Jonas, the analyst who published the report, stated, “The Chinese electric vehicle market is oversupplied, and price competition will continue throughout this year.”
In reality, China’s BYD, which has surpassed Tesla to become the world’s largest electric vehicle manufacturer, is intensifying the price war by reducing the price of the Seagull, its cheapest electric vehicle, by 5%.
Upon hearing this news, Tesla’s stock price plummeted by more than 2% despite a general rise in the New York Stock Exchange.
On the same day, Tesla recorded a price of $176.54, a 2.32% decrease from the previous trading day. This is the first time Tesla’s stock price has dropped to the $170 range since May last year. As a result, Tesla’s stock has plunged 28% since the beginning of the year.
sinopark@news1.kr
