Morgan Stanley analysts downgraded Tesla (NASDAQ:TSLA) shares to Equal Weight from Overweight, sending shares almost 4% lower at one time in premarket Thursday.
They raised the price target to $250 per share from the prior $200. Tesla shares closed 5.5% lower Wednesday while they rallied nearly 2% on Thursday.
The analysts have been among the most vocal Tesla bulls on the Street in recent years. However, they are now stepping to the sidelines after a massive rally in Tesla shares pushed valuation to “fair” levels.
“I have to be up-front with you all. While the team has defended the Tesla OW rating all year, I did not see this 111% YTD rally coming (the S&P 500 is up 14% YTD, for context). We think it's understandable and are sympathetic to the changes in the market narrative around the name,” the lead analyst said in a downgrade note.
While the analysts made a move, they highlight that Morgan Stanley is “not trying to call 'the end' to the Tesla rally.”
LAS VEGAS, June 22 (Reuters) - Lithium producers are growing anxious that delays in mine permitting, staffing shortages and inflation may hinder their ability to supply enough of the battery metal to meet the world's aggressive electrification timelines.
Once a niche metal used primarily in ceramics and pharmaceuticals, lithium is now one of the world's most in-demand metals given aggressive EV plans from Stellantis
, Ford and other automakers.
At stake is the pace with which electric vehicles could displace internal combustion engines, a key goal of the green energy transition.
"You could end up in a crisis situation where the battery companies don't have the security of (lithium) feedstock," Stu Crow, chairman of Lake Resources , said on the sidelines of this week's Fastmarkets Lithium and Battery Raw Materials conference in Las Vegas.
"There's a disconnect between the panic that we're seeing here, and the frenetic activity of trying to secure supply within the industry."
This week, Lake Resources became the latest lithium company to announce a project delay, pushing back first production from its Kachi lithium project in Argentina by three years. It cited power supply and other logistics concerns.
Albemarle , the world's largest lithium producer, is growing rapidly across the Americas, Asia and Australia. Still, it expects global lithium demand to exceed supply by 500,000 metric tons in 2030. Various consultancies and other producers have slightly different projections, but all warn of a looming shortage.
"It's a big challenge," said Eric Norris, head of Albemarle's lithium business.
There were 45 lithium mines operating in the world last year, with 11 expected to open this year and seven next year, according to Fastmarkets. That pace is far below what consultants say is needed to ensure adequate global supply.
Barclays downgrades Tesla, says investors should take profits after the stock’s massive rally PUBLISHED WED, JUN 21 20236:00 AM EDTUPDATED WED, JUN 21 202311:28 AM EDT Alex Harring @ALEX_HARRING WATCH LIVE
Tesla ..car company plus aI company plus IRA company plus carbon credit company plus cyber trucks, plus expansions in Germany China, Mexico, India , plus fsd, plus I don't know how many plus
Barclays lowered its rating on Tesla (NASDAQ:TSLA) on Wednesday to Equal Weight from Overweight on the expectation that shares will cool off from their hot run in 2023.
Analyst Dan Levy and team think it is time for investors to take profits on the electric vehicle stock following the AI-driven thematic rally and recent Supercharger buzz, although they conceded that there is risk trying to call the top in the recent rally.
"Our experience covering TSLA has made us well aware of the potential for TSLA’s stock movements to be driven by more than fundamentals... In fact, we have at times been willing to be more generous with our target multiple given the belief that TSLA is far more likely to get the more than a carmaker treatment by the market, with support from different pockets of the investment community, including retail and momentum investors."
However, questions on discounting and margins are seen cropping up with the Q2 and Q3 Tesla (TSLA) earnings reports to potentially pull the plug on the rally.
Looking further ahead, Barclays continues to see Tesla (TSLA) TSLA as the long-term winner amongst OEMs in the race to an electric vehicle world. Excitement is expected to build again in the late 2024-2025 timeframe as TSLA begins to ramp on the Model 2, its low-cost model, which will mark TSLA’s push for mass scale.
Barclays assigned a price target of $260 to Tesla. Shares of Tesla (TSLA) rose 1.33% premarket to $278.09.
Tesla swept the top four spots on the Cars.com annual list of the most American-made cars, quite an achievement for Elon Musk's company. But the big surprise is who didn't make the top 10 list.
The 2023 top 10, in order, are: The Tesla $(TSLA)$ Model Y, 3, X, and S. The Passport from Honda Motor $(HMC)$ is fifth and ID.4 from Volkswagen (VOW.Germany) is sixth. Then comes the Honda Odyssey, Acura MDX, Honda Ridgeline, and Acura RDX.
Ford Motor $(F)$ and General Motors $(GM)$ didn't make the top 10.
Tesla makes vehicles for the U.S. market in two plants located in California and Texas. It also makes batteries for its vehicles in Nevada. In 2022, Tesla's four models -- the Y, 3, X, and S -- captured four of the top six spots.
Acuras are made by Honda, and many of the Honda vehicles on the list are manufactured in Lincoln, Ala.
So what happened to Ford and GM? In 2022, GM had two vehicles on the list. The Corvette and GMC Canyon. Ford's Lincoln Corsair came in at number three that year. None made the 2023 list.
One issue for Ford and GM is their vehicles are North American-made. They have plants producing vehicles and parts in the U.S., Canada, and Mexico.
Without spelling out exactly what happened, Cars.com Detroit Bureau Chief Aaron Bragman points out that components get re-sourced with major systems moving from plant to plant. An engine that was once manufactured in the U.S. might be moved to a facility in Mexico. "Same engine, different plant," he says.
While falling to make the 2023 top 10, Ford and GM are plenty American. GM has 18 vehicles in the top 100, the most of any auto maker. Ford, Toyota Motor $(TM)$, and Honda tied for second with 13 each.
What is more, GM has about 104,000 U.S. employees, according to its annual proxy statement. Ford has about 88,000 U.S. employees, according to the company's social impact report. Both figures likely top Tesla in the U.S.
Tesla ended 2022 with about 127,000 employees worldwide. It doesn't break down employment by region and didn't respond to a request for comment. Tesla has significant operations in China and Europe. Tesla is also building a plant in Mexico.
Cars.com (ticker: CARS) has produced a version of the American Made index since 2006. The list provides auto makers with bragging rights, but it can also mean cash in their pockets.
"It's important to [car] shoppers...which is why we do this," says Bragman. "The purpose of what we do is to help shoppers make the most informed [buying] decisions they can."
American-made is one factor in a buying decision. Cars.com finds that half of customers asked say they are willing to pay more for a car if it creates U.S. jobs.
Being the most American-made means the most U.S. jobs. One primary automotive assembly job can create more than six other jobs, according to Oxford Economics. Auto plants need parts and auto-related workers need services in communities surrounding a manufacturing site.
The emergence of the ID.4 on the list was one thing Bragman found particularly interesting. "I think that might potentially presage a trend that's coming over the next few years...a result of the Inflation Reduction Act."
That law passed in mid-2022, requires EVs to be assembled in North America to qualify for purchase tax credits. There are also requirements for local sourcing of batteries and battery materials.
Cars are set to get even more American thanks to new EV laws. And Tesla's dominance of the American-made list is a good reminder that mass-market electric vehicles are an American innovation.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
UlarSawa
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Posted by UlarSawa > 2023-06-22 07:46 |
Post removed.Why?