Latest news with #AdamJonas
Business Insider
19 hours ago
- Business
- Business Insider
Lucid Stock (LCID): Morgan Stanley Sees ‘Strategic Opportunities' in Uber Deal Ahead of Q2 Results
Luxury electric vehicle (EV) maker Lucid Group (LCID) will report its Q2 results on August 6. The stock gained over 36% on Thursday after the company announced a new partnership with Uber (UBER) and autonomous tech startup Nuro. The three companies plan to deploy 20,000 Lucid Gravity SUVs, equipped with Nuro's self-driving technology, on Uber's network over the next six years. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Following the news, Top Morgan Stanley analyst Adam Jonas reiterated a Hold rating on Lucid with a $3.00 price target. Four-star analyst Adam Jonas believes the Uber-Nuro deal shows that Lucid is expanding its focus beyond EVs and starting to pursue 'AI-enabled autonomy' through strategic partnerships. Analyst Sees Long-Term Value in the Uber Deal Jonas highlighted Lucid's upcoming Gravity SUV as a key part of the company's next growth phase. He believes the deal shows Lucid's potential to play a bigger role in the AI and self-driving space. As part of the deal, Uber will invest $300 million in Lucid. While the amount is relatively small compared to Lucid's ongoing cash needs, Jonas believes it could provide short-term support as Lucid works to ramp up Gravity production. Although Morgan Stanley remains cautious on the stock, the firm views the deal as an important step that could lead to more partnerships in AI, EV technology, and global markets, helping Lucid strengthen its position in the fast-growing autonomous driving space. What's Ahead for Lucid Stock? Looking ahead into the Q2 earnings season, Wall Street forecasts a Q2 2025 loss of $0.22 per share, an improvement from the $0.34 per share loss in the same quarter last year. Meanwhile, revenues are expected to rise by 41% from the same quarter last year, reaching $283.2 million, according to data from the TipRanks Forecast page. Investors will be watching closely for updates on Gravity production, spending levels, and any early signs of revenue growth tied to these new partnerships. Is LCID Stock a Buy? The stock of Lucid Group has a consensus Hold rating among ten Wall Street analysts. That rating is currently based on one Buy, eight Hold, and one Sell recommendations issued in the past three months. The average LCID price target of $2.70 implies 13.46% downside from current levels.
Yahoo
5 days ago
- Automotive
- Yahoo
This Longtime Tesla Bull Just Issued a New Warning for TSLA Stock Holders
Morgan Stanley's Adam Jonas, a prominent Tesla (TSLA) bull, issued a stark warning to shareholders following CEO Elon Musk's announcement that he was launching the 'America Party,' a new political venture targeting strategic congressional seats. Jonas cautioned investors to brace for continued political distractions, writing that they 'should be prepared for further devotion of resources (financial, time/attention) in the direction of Mr. Musk's political priorities which may add further near-term pressure to TSLA shares.' Palantir Just Launched Warp Speed for Warships. Does That Make PLTR Stock a Buy? This Analyst Just Doubled His Price Target on AMD Stock How High Can Nvidia Stock Go as Jensen Huang Heads to China? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. The warning comes as Tesla stock plummeted nearly 7% on Monday, July 7, erasing over $68 billion in market capitalization. Jonas believes Musk's political activism represents 'part of a planned strategy to achieve a specific goal' rather than random involvement, suggesting these distractions aren't temporary. Tesla's fundamentals remain challenged, with Q2 deliveries declining 14% year-over-year to 384,000 vehicles. Morgan Stanley projects another 13% volume decline in the second half of 2025. However, Jonas maintains optimism around Tesla's pivot to robotics and AI. He calculates that replacing just 10% of Tesla's 125,665 employees with humanoid robots could generate $2.5 billion in value, at an approximate net present value of $200,000 per unit. With earnings approaching on July 23, Jonas expects Tesla to emphasize its robotaxi roadmap and potentially announce an AI Day to recruit talent, positioning Tesla's future beyond traditional automotive manufacturing. Analysts tracking Tesla stock expect Q2 revenue to fall by 11% year over year to $22.4 billion while adjusted earnings are forecast to narrow by 20% to $0.41 per share. Tesla has failed to beat revenue and earnings estimates in four of the last five quarters. The EV maker missed revenue estimates by 9.3% and earnings estimates by 37% in Q1, but TSLA stock still gained 5.4% following the release of its results. Tesla's earnings underperformance is forecast to continue for the rest of 2025. According to consensus estimates, Tesla is expected to report an earnings decline of 25% compared to the 7.4% earnings growth for the S&P 500 index this year. Tesla shares have declined 22% year-to-date as the company faces weakening EV demand, political uncertainty, and CEO Elon Musk's controversial leadership style. Despite trading at a premium adjusted forward earnings ratio of 170x, Tesla's fundamentals are deteriorating. The 'Musk premium' that historically supported Tesla's valuation is eroding. Recent legislation eliminating the $7,500 EV tax credit, ending residential solar support, and rolling back emissions regulations poses significant challenges for Tesla's core business. Moreover, Tesla faces intensifying competition, from legacy automakers, other EV startups, and Chinese rivals that have government support in the Chinese market. Elsewhere, Musk's political antics risk alienating consumers and inviting regulatory retaliation. Tesla's next three years will be make or break as it attempts to deploy robotaxis nationwide while navigating these substantial headwinds. Investors may want to avoid the stock until greater clarity emerges on these multiple challenges. Out of the 40 analysts covering Tesla stock, 12 recommend 'Strong Buy,' two recommend 'Moderate Buy,' 16 recommend 'Hold,' and 10 recommend 'Strong Sell.' The average target price for TSLA stock is $297, 6% below the current trading price. On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
27-06-2025
- Automotive
- Yahoo
Tesla's European Sales Plunged for a Fifth Straight Month. Should You Sell TSLA Stock Here?
Tesla (TSLA) lost as much as 5% on Wednesday after European Automobile Manufacturer Association data confirmed its sales continued to struggle in Europe last month. In May, the automaker sold 13,863 vehicles in the region – down nearly 28% on a year-over-year basis as customers favored more affordable and features-rich EVs from Chinese automakers. Broadcom Just Got a New Street-High Price Target. Should You Buy AVGO Stock Here? Is United Health Stock a Buy, Hold or Sell for July 2025? This New ETF Promises to Help You Invest Like Warren Buffett and Yields 15% Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Tesla stock is now down some 10% versus its recent high. May marked the fifth consecutive month of declining sales in Europe, which is alarming given that overall EV sales in the region were actually up more than 25% last month. Continued sales declines amidst intense competition from the likes of BYD (BYDDY) have contracted Tesla's European market share to just 1.2% - raising concerns about pricing power, brand momentum, and regional strategy. What it signals is that the company's product lineup and positioning may be losing relevance in key international markets, which could hurt future growth and investor confidence moving forward. Morgan Stanley's senior analyst Adam Jonas downplayed the ACEA data and reiterated his bullish view on Tesla stock in a research note today. According to him, the company's future value depends more on its robotaxi initiative and less on its overall footprint in electric vehicles at large. TSLA had a successful launch of its robotaxis in Austin on June 22 – and the company's share price will likely surge further as it scales its autonomous operations in the back half of this year, Jonas added. Adam Jonas currently has a $410 price target on Tesla, indicating potential upside of another 25% in the EV stock from here. While Jonas is focusing entirely on the robotaxi launch, other Wall Street analysts seem concerned about the market share that TSLA keeps losing in its core electric vehicles business. According to Barchart, the consensus rating on Tesla stock currently sits at 'Hold' only with the mean target of about $293 indicating potential downside of some 10% from current levels. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-06-2025
- Automotive
- Yahoo
Morgan Stanley Maintained a Buy Rating on Tesla (TSLA), Kept the PT Unchanged
Tesla, Inc. (NASDAQ:TSLA) is one of the 12 Best Stocks to Buy and Hold for the Long Term. On June 20, Morgan Stanley analyst Adam Jonas maintained a Buy rating on Tesla, Inc. (NASDAQ:TSLA) with a price target of $410. The rating comes right before the company is set to test self-driving vehicles. Jonas highlighted that the market is underestimating the role of automobiles in the overall hybrid computing market. He suggests that Tesla, Inc. (NASDAQ:TSLA) has the potential to leverage new AI-enabled technologies to innovate self-driving vehicles beyond traditional functions. Jonas sees the company's upcoming tests as a step closer to a future where AI and robotics take new robotic forms, which will require complex computing systems. The analyst sees Tesla, Inc. (NASDAQ:TSLA) playing a crucial role in enabling the robotic muscle and expanding the robotic market with the degree of freedom that makes it futuristic. Thus Jonas remains optimistic about the strategic growth opportunities for the company in the technology industry. While we acknowledge the potential of TSLA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
CNBC
22-06-2025
- Automotive
- CNBC
China car suppliers can be early winners in the humanoid race, Morgan Stanley says
If the future is all about building mechanical mobility, whether on wheels or robotic legs, auto parts suppliers have a competitive edge. "We believe humanoid robots will bring a third wave of growth for auto parts suppliers," Morgan Stanley analysts said in a June 18 report. The authors include lead autos analyst Adam Jonas, industrial analyst Sheng Zhong and hardware technology analyst Andy Meng. The team upgraded two self-described Chinese Tesla suppliers and maintained a rating of overweight on another given expectations the companies can benefit from the coming rise of humanoids. This would be similar to how auto parts suppliers got a boost from the growth of electric cars and subsequently growth in "smart" cars with driver-assist capabilities. One of the parts companies, Sanhua , is scheduled to list in Hong Kong on Monday in addition to its current listing on mainland China's Shenzhen exchange. Already, at least two automakers — Tesla and Xpeng — are developing humanoid robots. Other car companies such as Zeekr and Volkswagen have teased how they're trying out humanoids at their factories. Auto suppliers "have the chance" to capture 47% to 60% of spending on parts and materials, according to Morgan Stanley estimates. In dollar terms, auto parts suppliers can account for around $15,000, or 60%, of each humanoid's production cost, the firm's report said. Other humanoid components such as screws and bearings aren't commonly used in cars, making machinery companies better poised to supply them, the report said. By 2050, Morgan Stanley predicts the humanoid market will be worth $800 billion in China and $5 trillion worldwide. As it's still early days, the analysts prefer "tier-1" module assemblers such as Sanhua since they "can secure assembly orders no matter which tech path is chosen." That's in contrast with "tier-2" component makers such as lidar or chip producers. A trio of sector picks Here are Morgan Stanley's three sector picks, all currently traded in mainland China: Tuopu — The firm issued a price target of 63 yuan, for upside of nearly 39% from Friday's close. Tuopu makes actuators, which enable mechanical movement in a car , and act as joints and muscles in humanoids. Morgan Stanley trimmed its price target on Tuopu due to softer Tesla orders, but maintained its overweight rating. The analysts expect Tuopu can supply humanoid actuator models as well as dexterous hand models for the robots. Actuator modules account for just under half of a humanoid's total cost, but even when incorporating a price drop, the total addressable market for the modules worldwide is likely to grow by 57% on an annual basis through 2030, Morgan Stanley predicts. "Such a material value composition offers revenue upside to Sanhua and Tuopu," the analysts said. Sanhua — The firm assigned a price target of 30 yuan, reflecting 20% upside from Friday's close. Morgan Stanley upgraded Sanhua to overweight from equal weight, and the firm raised the price target mildly on stronger-than-expected 2025 revenue and expectations for rising electric vehicle penetration worldwide. "We estimate that every 10ppt of global market share in humanoid actuator modules by 2030E would bring incremental revenue to Sanhua equal to 11% of 2024 total revenue," the analysts said. "To mitigate geopolitical risk, Sanhua has been setting up a plant in Thailand, and it expects to start production there from 3Q25." Xusheng — The firm gave the stock a price target of 12 yuan. Shares closed at 12.08 yuan on Friday. Morgan Stanley upgraded the stock to equal weight from underweight on expectations Xusheng's revenue will "recover modestly" as startup automaker Li Auto launches more battery-only electric cars. However, the analysts cautioned that Xusheng may see lower-than-expected revenue from Tesla and other customers. In terms of humanoids, Xusheng can supply casting and torso structural parts, the analysts said. It's still not fully clear how easy it is for the auto parts suppliers to directly shift to making humanoid parts. There are many questions about how quickly and how large the industry of human-like robots will become. The analysts also cautioned that despite Chinese humanoid parts suppliers' cost advantage over overseas peers, U.S.-China tensions could force businesses to choose more expensive alternatives.
