Dark clouds might be looming for Tesla Motors Inc (NASDAQ:TSLA), according to a Morgan Stanley (NYSE:MS) analyst report, which has resulted in a 4% drop for the stock today in the equity market. On TheStreet, Jim Cramer warned the investors, or the hard core believers in Elon Musk’s, Tesla CEO, capabilities to at least have a look at the report before they find themselves blindsided.
” […] When Morgan Stanley (NYSE:MS) cuts numbers for Tesla Motors Inc (NASDAQ:TSLA) but reiterates its price target, says to buy it more than ever. I am so old school, but even though this cold stock is beloved by people, it makes me blanch. I think the idea that there are execution problems in Tesla makes me more concerned. All I can say is those of you who believe, those of you who are part of the cold then it is a cold because the company cannot be valued by any traditional metrics, you got to take a look at the Morgan Stanley report […],” said Cramer.
On the outset there doesn’t seem to be much out of Elon Musk’s control but the recent delays in Tesla Motors Inc (NASDAQ:TSLA)’s new luxury SUV Model X haven’t been a testament to just that. Execution is vital in the business industry, and lost time directly translates into lost revenues for the company, and greater opportunity for the competitors to gain market share.
As far as ambitions are concerned, Musk ranks pretty high on that spectrum. After all, the man has promised to put humans on Mars within the next twenty years or so, and he is getting ready with an affordable transport to do so. Is Model X’s delay a victim of those ambitions? Is Tesla Motors Inc (NASDAQ:TSLA)’s new arrival unable to satiate his desire for perfection?
If that is indeed the case, investors shouldn’t worry, in the long run at least, because the lost revenues and the competitor advantage that we talked about earlier will have a negligible effect on the company’s top line, when the new model is finally released. It will take the market by storm. Perhaps this is also the reason why Morgan Stanley (NYSE:MS) still has a price target of $320 and a buy rating for Tesla Motors Inc (NASDAQ:TSLA).
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