Tomahawk, WI 09/16/2014 (Basicsmedia) – Tesla Motors Inc. (NASDAQ:TSLA) CEO, Elon Musk sentiments that the company’s stock might be overpriced came to haunt the company on Monday as his sentiments were also’ echoed by an analyst at Morgan Stanley (NYSE:MS). CNBC’s managing editor, Allen Wastler, attributes the skidding in the market to the stock running a bit too aggressively in the market
Tesla Motors Inc. (NASDAQ:TSLA)’s stock sunk by a high of $25.34 to close Monday trading session at a low of $253.86.
“Tesla getting crushed after Morgan Stanley released a report echoing what CEO, Elon Musk, said last week, that maybe Tesla’s stock price had gotten maybe just a bit of itself,” said CNBC’s Dominic Chu.
The main concern at the moment for investors and staunch supporters of the giant electric company is whether the skidding will continue. Adam Jonas, an analyst at Morgan Stanley, is quoted as saying that Tesla Motors Inc. (NASDAQ:TSLA) remains overpriced based on the fact that electrical vehicles are falling on a global scale.
Jonas took note of Tesla’s aggressive push for growth in China that he believes will not provide the expected upside going forward. Another major threat to electric vehicles are the upcoming driverless cars that are expected to be a hit in the future. General Motors Company (NYSE:GM) and Google Inc. (NASDAQ:GOOG) have already highlighted their plans to pursue the driverless car technology seen as a major technological breakthrough and a threat to the popularity of electric vehicles
Tesla Motors Inc. (NASDAQ:TSLA) has just awarded the state of Nevada the rights for the construction of its mega battery factory awaiting to see the impact it will have in terms of battery cost’s going forward. Tesla’s other challenge with its electric vehicles is the fact that there are only few charging station that can be used to power the vehicles. The result is that only a few people can be able to buy the company’s electric cars.
Despite reiterating that the stock might be’ overpriced, Jonas still believes that Tesla Motors Inc. (NASDAQ:TSLA) is still the worlds’ most important car company. Jona’s also affirmed that the company’s acceleration in one direction mostly on the upside might be’ limited going forward.