Matthew Waterman
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Matthew Waterman in Brand Power,

Tesla Downgraded By Morgan Stanley

Morgan Stanley lowered their price target today on the high-tech Tesla Motors from $465 to $450 after previewing the Model X. Although the all-electric car has impressive safety features and performace, analyst Adam Jonas was not pleased with the high cost of the car, expected to sell for $120,000 to $130,000 per unit. Jonas stated that the sticker price was about $25,000 higher than he had expected. 

Tesla is seen as the model of efficiency all over the world by car enthusiasts, but the company still struggles to turn a profit consistently, making the stock price a speculative bet. Although the model X is intended to be a better version of the classic SUV design, at that price point it unfortunately competes with Porsche, which is one of the more profitable brands in the struggling Volkswagen portfolio. On Tuesday, October 6, 2015 the stock closed at $241.46, down $4.69. That is about 14.5% down from the year high of $280.