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- The price target of Tesla has been reduced at Morgan Stanley for the third time this year.
- The company's badysts said in a report that investors' fears about Tesla's financial strength could affect employee morale and brand perception.
- Morgan Stanley's note came a few days after Tesla's first-quarter results fell below badysts' expectations and tarnished the automaker's actions.
- Watch Tesla's trade live.
The negative sentiment of Tesla investors could spill over to the electric car maker's company, Morgan Stanley said in a report released on Monday, prompting the company to lower its price target on Tesla shares for the third time in a row. as many months.
"We are increasingly concerned about the impact of investor concerns on Tesla's financial strength and its projected liquidity position on employee morale, customer perception and their relationship with key stakeholders and suppliers." , wrote badysts led by Adam Jonas.
Morgan Stanley lowered its price target from $ 260 to $ 240 per share, which implies a 13% drop from Friday's closing price.
His price reductions on the stock are fast. Last month, Jonas and his team lowered their price target from $ 283 to $ 260, and the previous month from $ 291 to $ 283.
"If and how Tesla could have access to capital, the main topic of discussions with investors," said the team, adding that they still thought the automaker should raise $ 2.5 billion of stock in the third quarter. "Even the bulls we are talking with are in favor of the company raising enough money to dispel the questions about its potential financing needs."
The report follows Tesla's release on Wednesday of lower Q1 delivery figures than Wall Street estimates, plunging the stock into the downfall and highlighting what badysts see as slowing demand.
Read more: Tesla badysts pile up after disappointing delivery figures that plunged the stock
Not all of Tesla's shareholders struggled last week.
On Thursday, CEO Elon Musk appeared before a federal judge in Manhattan after the Securities and Exchange Commission asked the court to hold Musk in defiance of his tweet on vehicle production. Musk and the SEC have been ordered to meet at least one hour within two weeks to resolve their differences.
In his report on Monday, badysts at Morgan Stanley seemed upset by various fundamental questions weighing on Tesla.
"The fundamental narrative around Tesla seems more murky than we have seen for several years," badysts wrote. "Signs of weakening demand have long raised questions about the company's ability to fund itself as an independent business."
Tesla dropped 17% this year until Friday, trading at $ 274.96 a share.
Read more about Tesla's coverage of Markets Insider and Business Insider:
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