By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Live Trading NewsLive Trading NewsLive Trading News
  • Stocks
  • Forex
  • Gold
  • KNIGHTS
  • Luxury
  • Horse Racing
  • Trade Now
Search
Reading: Knightsbridge Say Musk Knows the Challenges Ahead, $TSLA is a Buy
Share
Live Trading NewsLive Trading News
  • Stocks
  • Forex
  • Gold
  • KNIGHTS
  • Luxury
  • Horse Racing
  • Trade Now
Search
  • Stocks
  • Forex
  • Gold
  • KNIGHTS
  • Luxury
  • Horse Racing
  • Trade Now
Follow US
© 2024 LiveTradingNews.com - All Rights Reserved.
Live Trading News > Blog > Asia > China > Knightsbridge Say Musk Knows the Challenges Ahead, $TSLA is a Buy
China

Knightsbridge Say Musk Knows the Challenges Ahead, $TSLA is a Buy

Shayne Heffernan Ph.D.
Last updated: October 26, 2023 9:11 pm
Shayne Heffernan Ph.D.
Share
5 Min Read
SHARE

It’s true that Elon Musk and Tesla have faced various challenges as they navigate the rapidly evolving electric vehicle (EV) industry. While Tesla has been a pioneer and leader in the EV market, the company has had to contend with issues related to production, supply chain disruptions, regulatory hurdles, and competition. Elon Musk’s ability to acknowledge these challenges and work towards solutions has been a hallmark of Tesla’s approach.

Investment firms, like Knightsbridge, often assess companies and their prospects based on a variety of factors, including their management’s ability to address challenges and adapt to changing market conditions. If Knightsbridge has recommended Tesla as a “buy,” it likely means they see potential for the company’s stock to perform well in the future, despite the challenges it faces.

Tesla’s Q3 conference call proved to be a momentous event. While the results from the electric vehicle (EV) pioneer were undeniably disappointing, the call itself featured ominous warnings from CEO Elon Musk regarding the state of the global economy, the increasing interest rate environment, and the challenging road ahead for the production of the Cybertruck.

As a result, Tesla’s shares took a hit as investors grappled with an uncertain future for the unrivaled EV leader. In fact, Morgan Stanley analyst Adam Jonas has put forth the argument that Tesla’s bleak outlook could have significant ramifications for the broader industry.

“Beyond the negative revisions to Tesla’s estimates after a disappointing Q3 result and one of the most cautious conference calls in years, we believe investors should seriously consider the implications for the global EV industry,” Jonas explained. “We see a warning from the ‘gold standard’ of EVs having a ripple effect across the industry. In our view, Tesla’s caution equals caution for EVs as a whole.”

Undoubtedly, there are concerns about demand, but when you consider that Tesla is the industry leader, commanding nearly 20% of the current global EV market and over 50% of the US EV market, it signals a problem that extends beyond just Tesla’s vehicle appetite.

“When the world’s leading EV company expresses such reservations about the future, its competitors and suppliers should take heed,” Jonas added. “If Tesla doesn’t grow its profits in FY24, what does this mean for the EV efforts in Detroit, Wolfsburg, and Nagoya?”

Tesla issued its warning at a time when intense negotiations are ongoing between the UAW and the Detroit-based OEMs. The executive teams and boards of these American automakers are grappling with various factors, including whether their investments in EV expansion, which they have previously announced and continue to pursue, make economic sense. Although Tesla is renowned for its industry-leading production scale, diverse range of models, manufacturing efficiency, and vehicle design, its profit margins currently lag significantly behind those of internal combustion engine (ICE) products.

As a result, Jonas anticipates a shift in focus. “We expect the Detroit OEMs to increasingly emphasize the attractiveness and profitability of their ICE portfolios while, to some extent, downplaying their EV plans. This process has already begun,” he concluded.

Meanwhile, Jonas maintains an Overweight (Buy) rating on TSLA stock, supported by a Street-high price target of $380, indicating a potential 73% increase in the year ahead.

Tesla often evokes a wide range of opinions on Wall Street, and this is no different. With a combination of 14 Buy and Hold ratings, along with 5 Sells, the stock maintains a Moderate Buy consensus rating. With an average target price of $253.18, there is room for approximately 16% returns over the next 12 months.

Shayne Heffernan

You Might Also Like

Understanding the Dow Jones Industrial Average

Saudi Arabia’s Digital Revolution

De-Dollarization Is Inevitable

US Bombs Iran: Escalation and Implications

USA Bombs Iran

TAGGED:shayne heffernan

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.

Subscribe our newsletter for latest news around the world. Let's stay updated!

By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Share This Article
Facebook Twitter Copy Link Print
Share
By Shayne Heffernan Ph.D.
Follow:
Shayne Heffernan Ph.D. Economist at Knightsbridge holds a Ph.D. in Economics and brings with him over 40 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Crypto, Mining, Shipping, Technology and Financial Services.
Previous Article The Chinese Economy is in Recovery $BABA $BIDU $JD
Next Article The Commercial Evolution of Louis Vuitton: Is It Losing Its Luxury Luster?


Latest News

Bitcoin Dip Is Your Opportunity
America Bitcoin Crypto Featured Headline News Knightsbridge Opinion Politics Shayne Heffernan Shayne Heffernan Shayne Heffernan on Investments Sovereign Individual Strategy World War 3 June 21, 2025
Eight Killed in Brazil Hot Air Balloon Crash
Headline News Travel June 21, 2025
Iran Rocked by 5.1-Magnitude Earthquake
Headline News June 20, 2025
Israel vs. Iran: Missiles, Military Hardware, and Personnel
Headline News Politics Shayne Heffernan June 20, 2025

Stay Connected

235.3kFollowersLike
69.1kFollowersFollow
11.6kFollowersPin
56.4kFollowersFollow
4.4kFollowersFollow
//

Stay informed with LiveTradingNews.com – your ultimate destination for timely and insightful updates on global markets, finance, and investment trends. Explore the latest news and analysis to empower your trading decisions.

Quick Link

  • About us
  • Advertise
  • Send us a tip!
  • Privacy Policy
  • Contact us

Top Categories

  • Knightsbridge Insights
  • Featured
  • Stocks
  • Shayne Heffernan
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

Subscribe our newsletter for latest news around the world. Let's stay updated!

Live Trading NewsLive Trading News
Follow US
© 2025 LiveTradingNews - For The Traders, By The Traders – All Right Reserved By Knightsbridge Group
Welcome Back!

Sign in to your account

Register Lost your password?