Morgan Stanley makes Tesla forecast for 2023, cuts price target as production headwinds persist – Tesla (NASDAQ:TSLA)

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Morgan Stanley analysts lowered their price target on Tesla Inc. TSLA stock following a missed delivery in the third quarter.

What there is to know: Morgan Stanley analyst adam jonas maintained Tesla with an overweight rating on Monday and lowered the price target from $383 to $350, citing continued production headwinds.

“We believe the factors that drove Tesla’s lower-than-expected Q3 production and shipments may continue to present headwinds in Q4 as well as in FY23,” Morgan Stanley analysts wrote. in a new note to customers.

See also: Tesla rebounds to report record third-quarter deliveries as it charts course for strong year-end

Tesla recently confirmed that it sold 343,830 vehicles in the third quarter, representing an approximate 42.5% year-over-year increase. Most analysts expected quarterly shipments of around 360,000.

Morgan Stanley analysts updated their forecast to reflect Tesla’s delivery failure. Deliveries for the full year are now expected to be around 1.31 million, down from 1.37 million previously.

The Elon MuskThe company-led company is now expected to deliver 1.8 million vehicles in the course of 2023. That’s down from expectations of 2 million.

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Destruction of demand is part of the problem. Morgan Stanley warned that this could be reflected in coming months in shorter lead times and lower prices as EV consumers feel the effects of inflation.

“Nevertheless, we believe Tesla will still sell all the vehicles it can produce based on the FY23 guidance,” Morgan Stanley said.

Morgan Stanley’s new price target sits at $350. The analyst firm also lowered its bullish price target to $500 and its bearish price target to $150. Jonas has an accuracy rating of 58%, according to Benzinga’s analyst rating tool.

See also: Tesla Model S Vs. Lucid Air: This race is a photo-finish

TSLA Price Action: Tesla has a 52-week high of $414.50 and a 52-week low of $206.86. The stock was up 0.38% at $223.95 at press time, according to Benzinga Pro.

Photo: Courtesy of Tesla.

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