Morgan Stanley analyst Adam Jonas issued a lower target for Tesla on Wednesday, saying the automaker's SUV price tag is too hefty for the carmaker to meet its production volume goal for 2016.
Jonas wrote that the $130,000 SUV is just too pricey (via Business Insider):
Even allowing the Model X (average transaction price) to decline over time through the introduction of lower-spec models leaves what we believe to be a higher-priced vehicle than we expected that may struggle to meet the volume expectations of the market and our forecasts.
If you remember correctly, Jonas was the analyst that called for Tesla's stock to effectively double because he had a good idea for the automaker, which he said was the world's most important.
Jonas slightly revised his target to $450 from $465, so the "overweight" rating requires some context. Nonetheless, Jonas' small turn reflects a reality for the automaker that they probably already know: Tesla will need an affordable car soon if it hopes to turn a profit by 2020.
The post Tesla's Biggest Cheerleader Thinks Model X May Be Overpriced appeared first on The Truth About Cars.
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