Tesla electric car sales 'to fall 10% as Covid-19 hits demand'

Tesla will probably sell about 10% fewer cars this year than previously expected as the coronavirus outbreak weighs on demand for vehicles, said investment bank Morgan Stanley.

The bank slashed its 2020 sales target for Tesla to deliver 452,000 cars from the previous estimate of 500,000, according to a note to clients.

Morgan Stanley reduced its price target on the stock to $480 a share from $500 and kept its underweight rating.

Tesla’s volumes will probably drop about 10% in Europe this year, hurt by the coronavirus and softening of incentives in markets such as Norway and the Netherlands, wrote the Morgan Stanley analysts, led by Adam Jonas.

Analysts are paring back forecasts for the industry as a whole as consumers stay away from showrooms and shun large purchases.

“A Tesla is a high priced and discretionary purchase,” said the Morgan Stanley analysts.

Bloomberg