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Tesla Pares Losses Midday After Morgan Stanley Worst-Case Call

Stock MarketsMay 21, 2019 10:04AM ET
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Investing.com - Tesla (NASDAQ:TSLA) stock was fighting to avoid a fifth down day midday Tuesday as it pared losses following a withering sell-side research call.

Morgan Stanley analysts said that in a worst-case scenario, Tesla would be worth just $10 a share.

Tesla shares fell 1.4% midday, above $202 and solidly above the $196.04 low of the day following the research note's release.

"Tesla has grown too big relative to near-term demand, putting great strain on the fundamentals," Morgan Stanley analyst Adam Jonas wrote.

"The departure of key executives, price discounting, and extraordinary cost-cutting efforts add to the narrative of a company facing real potential stress," Jonas added.

The market action follows hot on the heels of a $2.7 billion fundraising round by the company two weeks ago that was oversubscribed, but has done little to settle the nerves of holders of Tesla's existing debt.

Meanwhile, brokerage Baird cut its price target for Elon Musk's company to $340 from $400, saying concerns over demand, credibility and noise around the company have kept incremental buyers out of the market.

-- Reuters contributed to this report.

Tesla Pares Losses Midday After Morgan Stanley Worst-Case Call
 

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Mahmoud Shaheen
Mahmoud Shaheen May 21, 2019 11:33AM ET
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Not sure if i should load up on tesla stocks or not
Mohammad Maroof
Mohammad Maroof May 21, 2019 11:33AM ET
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Long term load up, short tetm follow RSI, MACD
Mongkhol Gambir
Mongkhol Gambir May 21, 2019 11:33AM ET
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Load if up
Mongkhol Gambir
Mongkhol Gambir May 21, 2019 11:33AM ET
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Load it up and sell it after 5 years
Ji Go
Ji Go May 21, 2019 11:33AM ET
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Mihammed has best advice. Wait for trend to turn or break your position into tranches and get in to the position in pieces.
Ji Go
Ji Go May 21, 2019 11:33AM ET
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