Morgan Stanley analyst Adam Jones is cautious about Tesla’s long-term valuation.
In a note on Monday, Jones hinted that Tesla's current valuation of roughly $76 billion may not be sustainable, as he thinks that the company would over time be viewed more as a traditional auto manufacturer (versus a technology company).
Jonas maintains a $250 price target on Tesla shares.
“We are prepared for a potential surge in sentiment through 1H20 but question the sustainability”, Jones mentioned in the note.
Tesla CEO Elon Musk had to step down from his chairman position at the company after posting a tweet in August last year that he was "considering taking Tesla private at $420. Funding secured". Interestingly, Tesla stock rose to touch $420 per share on Tuesday, and is around $425 as of this writing.
On Monday, a Reuters report suggested that Tesla secured a $1.4 billion loan from a group of banks in China that it will use to expand production at its Shanghai factory.