Boston, MA 09/16/2014 (wallstreetpr) – Monday was one of the worst days for Tesla Motors Inc (NASDAQ:TSLA) in the recent past. Its shares took a big downturn and declined as much as 9% to close at $253 at the end of the day. The main reason behind this negative performance of TSLA was nothing but a statement published by Adam Jonas, Analyst at Morgan Stanley (NYSE:MS).
What Was There In Statement:
The note published by Jonas attracted investors from all over the world. He reiterated about the overweight rating assigned to Tesla Motors Inc (NASDAQ:TSLA) even after several sobering factors that could be considered about TSLA’s stock. One statement that played an important role in downgrading TSLA’s stock price is-
Why will people want to buy a Tesla in today’s autonomous world? Over fifteen years’ discounted cash flow of Morgan Stanley (NYSE:MS) coincides with the dawn of crowd source mobility, end of human driving and mega fleets. Even if people look to buy cars, then there is nothing special in TSLA that they can look after? There is a significant scope for those new entrants that can implement computing power and Moore’s Law to move things and people around the globe. The rules are changing rapidly, and other incumbent OEMs like BMW are not falling asleep.
As soon as Jonas published this statement, investors started paying it attention. He questioned not only TSLA’s lack of innovation, but also its future in electric car segment. Tesla Motors Inc (NASDAQ:TSLA) is known for offering electric cars, but its scope is said to be very limited after the entrance of various tech companies in this field in order to produce self-driving cars. The future of those cars that offer ‘human driving’ facility is not bright at all as there are companies that are ready to launch driverless cars in the market. The Morgan Stanley (NYSE:MS) team led by Jonas clearly indicated about Google Inc.’s self driven car concept.
