Tesla's Model 3 price cut suggests the electric car maker is approaching an 'air pocket' in demand, Morgan Stanley says.
Tesla's decision to cut the price of its popular Model 3 suggests the electric car maker is approaching an"air pocket" in demand, which Morgan Stanley says could weigh on both its bottom line and stock price.
He also reduced his 2019 earnings per share estimate to $1.30 from $4.17 and his 2020 estimate to $6.69 from $10.22. The analyst's new $260 stock price target implies about 10 percent downside to Tesla shares over the next year from Monday's close at $290.92. Shares fell 1.5 percent in premarket trading following the Morgan Stanley note.
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