Morgan Stanley analyst claims that Tesla‘s stock (TSLA) has dropped to a level close to value stock. Its value has still not recovered despite the automaker’s record-breaking deliveries, revenue, and profit. In fact, TSLA has decreased by more than 30% from August of this year, according to Electrek.
Furthermore, its stocks has plummeted over 50% since November 2021.
$150 per share bear case
Tesla bull and Morgan Stanley analyst Adam Jonas observed in a fresh note to clients this week that the company is approaching his $150 per share bear case. Interestingly, it makes TSLA more appealing from an EBITDA multiple perspectives:
“Tesla shares would trade at approximately 12.5x EV/EBITDA and 23x PE on our FY25 forecast (SBC burdened) which we see as excellent valuefor a self-funded, 20 to 30% top-line grower in top position to benefit from re-architecting the US on-shore/near-shore/friend-shore renewable supply chain at scale.”
According to Stanley, this establishes a “window of opportunity ” for prospective Tesla investors.
He also lowered his TSLA price target to $330.
Musk’s recent moves affect Tesla
It is worth noting that CEO Elon Musk significantly contributed to the decline in TSLA’s value as he sold its stocks worth billions of dollars. Furthermore, several investors have also sold their shares due to their diminished trust in Musk since he took over Twitter.
Nonetheless, a $5 to $10 billion stock repurchase program discussion has been disclosed by the leading automaker’s board of directors in an effort to revive TSLA’s market status.
