Analyst-driven stock boosts don’t satisfy

Today TSLA is getting an early boost from Adam Jonas of Morgan Stanley — the guy who recently asked Musk the “insightful question” about Tesla creating its own shared mobility platform a la Uber. Jonas dramatically boosted his price target (still not sure what a price target is supposed to mean) based on a belief that Tesla is going to dominate this emerging shared transportation sector.

Jonas is the same analyst who punished TSLA’s share price in December by saying recessed gas prices would erode Tesla’s business. That turned out to be nonsense. And today’s long-shot projection about a Tesla mobility program is equally unworthy of any stock movement. First, it’s a mere guess. Second, it would require Tesla to move from enthusiast vehicles, where it’s embarrassing incumbent rivals, to transport pods, pitting it against Apple and Google. Frankly, GM makes a better punching bag.

Can we please stick to the current context? TeslaMondo wants to see TSLA react to more tangible things, like exciting Tesla products that nobody else can touch, instead of third-party fantasies about an entirely new company angle. Analysts give; analysts take away. Hanging your hat on their wisdom means your hat will eventually hit the floor.

All the more reason to relish Model X. That’s a concrete thing that requires no analysis. It’s not a projection, forecast, estimation, calculation. Either it kicks ass or it doesn’t. And, since the NHTSA is still insisting on side mirrors instead of cameras, you can hang your hat on Model X.

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One thought on “Analyst-driven stock boosts don’t satisfy

  1. purrpullberra says:

    I thought I remembered him having a downgrade recently. I am not sure what to think of this guy… on the one hand I don’t disapprove of the larger vision he puts forth in many of the optimistic upgrades but on the other he has been too key to helping the stock price move several times and I don’t like the way that looks. If he shut up now I’d be happy I think. I’ll probably be happy with most of his analysis if he continues. But I’m not convinced he is always doing Tesla well.

    Like

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