Investor Sentiment on Tesla Stock Shrouded in Negativity Despite Bullish Outlook

Morgan Stanley analyst and Tesla Inc TSLA bull Adam Jonas on Monday conducted an investor survey to note the overwhelming negative sentiment on the EV giant’s shares. The analyst, however, continues to be bullish.

Investor Perception: A survey conducted by Morgan Stanley revealed overwhelming negativity towards Tesla’s stock. Three-quarters of respondents believe the stock is yet to bottom, bears outnumber bulls by over 2 to 1, and investors are concerned about the diminishing demand for electric vehicles.

Significantly, 60% of respondents expect Tesla shares to underperform compared to the S&P through year-end. Furthermore, about 75% of the survey participants anticipate the shares to bottom at or below $150.

Despite these sentiments, Adam Jonas maintains an overweight rating on Tesla with a $345 price target. He envisions Tesla as more than just an EV company, with AI/robotics and energy segments converging to achieve his price target. Morgan Stanley eagerly awaits Tesla’s AI Day 2024 for further insights into its AI efforts.

Relevance: During Tesla’s fourth-quarter earnings call in January, CEO Elon Musk expressed the company’s reluctance to host another AI day event since 2022 due to concerns about potential imitation. However, he also signaled openness to considering such an event this year.

Musk reiterated the company’s aim with these AI Day events – recruiting and dispelling the perception of Tesla as merely a car company, highlighting its broader identity as an AI robotics company.

Amid Tesla’s foundation in electric vehicle manufacturing, the company has diversified into energy storage solutions, solar products, supercharger stations, software, and robotics.

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