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Morgan Stanley analyst Adam Jonas, who previously claimed that Tesla had vast long-term growth potential, has now described the firm as a “distressed-credit and restructuring” story in a call with investors.
Forbes reports that during a recent call with investors, Morgan Stanley equity analyst Adam Jonas, a long-time Tesla bull who has recently grown skeptical of the company, expressed concerns over Tesla’s future. Issues raised on the call include signs that demand for Tesla’s electric vehicles appears to be slowing, poor sales in China, and lack of excitement over the announcement of the company’s Model Y SUV.
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Jonas stated during the call that as recently as 2018 “Tesla was seen as a growth story,” but “today, supply exceeds demand, they’re burning cash. Nobody cares about the Model Y. … Tesla is not seen as a growth story, at least the feedback we were getting, which is quite one-sided … it’s seen more as a distressed credit story and restructuring story.”
According to Bloomberg, Jonas also compared Tesla’s position in the auto industry to that of the “white rabbit” at dog races: “Auto company executives describe Tesla as the white rabbit at the dog race. All the other companies know they are never going to catch the rabbit; they...
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