Tesla Going Through A “Rather Dry Spell”, Says Morgan Stanley’s Adam Jonas

Tesla Going Through A “Rather Dry Spell”, Says Morgan Stanley’s Adam Jonas

In most respects, the latest note from Adam Jonas at Morgan Stanley on Tesla has been more of the same.

You’ve got your bona fide comedy, as Jonas starts his note by saying “Let’s begin with a healthy dose of intellectual honesty on the starting point for the stock,” before defending his $900 price target on the name…

You’ve got your “pie in the sky” style lofty estimates about a SaaS revenue stream that doesn’t exist and that the company likely doesn’t even have the infrastructure for…

You’ve got your insane valuation for Tesla’s insurance business…

Adam Jonas is out with a new $TSLA note which isn’t worth talking about except for one HILARIOUS line:

“Insurance. While the value of Tesla insurance is less than 4% of our $900 price target…”

SO ONLY $36 BILLION!!!
ROFLMAO!

How is this scumbag still at Morgan Stanley??? pic.twitter.com/zyAr8qHiZu

— Stanphyl Capital (@StanphylCap) June 14, 2021

…and finally, you’ve got your proclamation that Tesla is going to exceed its timelines for autonomous productions. You know, because the company has been so masterful with handling timelines in the past. 

All told, it was a pretty standard Adam Jonas ticker tape parade for the company.

But tucked into what can only be described as the “endless optimism” of Jonas’ note was an interesting point that the analyst made. Namely, he appears to make the suggestion that CEO Elon Musk’s latest obsession with bitcoin is indicative that Tesla’s underlying business could be going through a “dry spell”.

“Over the past couple of months, incoming client interest on Tesla is focused mostly on Chinese sales/production data and Elon Musk’s tweets regarding Bitcoin. Might Tesla-Bitcoin fever may be telling us something about the lull in Tesla sentiment?” Jonas asks toward the beginning of his note.

He continues: “You just know it’s a rather dry spell for Tesla when Bitcoin is the dominant new story and dominant driver of investor discussion day in, day out. In our opinion, what’s considerably more interesting than ‘decoding’ the TSLA-Bitcoin relationship is the fact that there is a virtual ‘vacuum’ of developments and news related to other areas of technological and commercial progress that the company is involved with on renewable energy, storage networking and transportation.”

He begrudgingly concludes about Tesla’s underwhelming Model S Plaid unveil: “Yes, the Model S Plaid unveil was fun, but where’s the next ‘big’ development to move the company forward?”

The lines even stood out CNBC’s Carl Quintanilla who pointed it out early this morning.

MORGAN STANLEY: “You just know it’s a rather dry spell for $TSLA when #Bitcoin is the dominant new story and dominant driver of investor discussion day in, day out. .. there is a virtual ‘vacuum’ of developments and news related to other areas ..” pic.twitter.com/klO7Ionf0C

— Carl Quintanilla (@carlquintanilla) June 15, 2021

It’s interesting to note this level of what appears to just be bemusement and exhaustion from Jonas. But whether or not it sticks out to the “sophisticated investors” buying Tesla stock remains another question…

Tyler Durden
Tue, 06/15/2021 – 09:16

Share DeepPol