Morgan Stanley cuts price target on Tesla

Morgan Stanley lowered the price target on Tesla to $350 (from $383), while reiterating an Overweight rating, citing lower-than-expected electric vehicle deliveries in the third quarter. According to Morgan Stanley experts, the factors that affected the company's third-quarter production cut and deliveries drop could continue to demonstrate challenges in the fourth quarter and 2023 as well.

They claim that Tesla is passing through record auto margins. According to Morgan Stanley analysts, the factors that hold back margin growth in the short term can now be better appreciated. They have to do with the ramp-up of two giga-factories on two different continents.

Morgan Stanley still has a positive outlook for the electric car maker. Experts assume that  the Tesla’s Master Plan ‘X’ will be released after the company's Q3 earnings are announced.  It is expected that the last phase of Tesla's long-term strategy will focus on restructuring the supply chain and making changes to the production process / sourcing process / scale.