Latest news with #AdamJonas
Yahoo
a day ago
- Automotive
- Yahoo
BYD Just Added Another Problem to Tesla's Long List
There is a heated price war in China's EV market. BYD just unleashed a new round of intense price cuts. Tesla has problems outside of China, too, such as Europe. These 10 stocks could mint the next wave of millionaires › Tesla (NASDAQ: TSLA) investors have been on a bit of a roller coaster ride so far in 2025. The technology company's stock was up early in the year before falling as much as 45% in March and April, and then partially recovering so that it now trades down about 15% for the year. It still trades nearly 28% below all-time highs reached in December 2024. Along the way, there have been constant challenges, including a price war in China, severely declining sales in Europe, and brand backlash related to CEO Elon Musk's involvement in national and international politics. The coaster ride could potentially turn downhill again this month, thanks to China-based electric vehicle (EV) maker BYD's (OTC: BYDDY) recent move to slash prices. The action will apply more pressure to a now-challenging Chinese market that Tesla used to dominate. Let's dig into the details. China's EV market is in the midst of a highly contested battle for market share that includes a brutal price war brought on by multiple factors, including government subsidies, a long list of competing products, and a slowing global economy. These dynamics likely prompted BYD's big move late last month to make vehicle price cuts of as much as 34% on 22 electric and plug-in hybrid vehicle models (effective through the end of June). The announced cuts came after BYD reported its slowest year-over-year sales growth (up 21% in April) in more than four years. BYD's price cuts are likely to force its competitors to enlarge discounts to avoid giving up sales and market share. According to Bloomberg Intelligence, the average vehicle discount in China is around 15% so far this year, but analysts warn it could get even worse during the second half of the year. Even one of Tesla's biggest supporters, Morgan Stanley's Adam Jonas, expressed skepticism that Tesla could catch the competition in China. Jonas suggested Tesla's future is now even more tied to its upcoming launch of a robotaxi service on June 12. A report in the industry website InsideEVs quoted the Morgan Stanley analysis, which summed things up by saying, "We recommend investors have a look at the pictures and specs of the Xiaomi YU7, which looks like a Ferrari or Aston Martin SUV at the price of a Toyota Camry. Then ask yourself if Tesla would be better off introducing more steering-wheel-having EVs." BYD's price cuts add to Tesla's problems overseas. The eventuality of Chinese automakers setting sail for the U.S. market will increase EV competition significantly and exacerbate the issue. Tesla's challenges extend beyond the brutal price war in China. The company has been watching sales plunge in Europe, where the company also once dominated. Tesla's new car registrations in Europe plunged to 7,261 units in April, a decline of 49% over the previous April, according to the European Automobile Manufacturers Association. Through April, Tesla sold roughly 61,000 vehicles in Europe, a 39% decline compared to the same period last year. The automaker's results overseas are certainly weighing on its global sales, which were down 13% during the first quarter -- the worst quarterly decline in the company's history. Tesla has definitely faced adversity in 2025, but there is a little bit of good news for investors. In a recent post on X (formerly Twitter), Musk said he's back to spending 24/7 at work and sleeping in Tesla's conference, server, or factory rooms. Hopefully, with Musk returning his focus to the automotive business, the brand backlash related to his extracurricular activities will eventually blow over. For Tesla, that can't come soon enough. Despite the potential buying opportunity here while the stock is down -- and if you truly believe in Tesla long-term, it is an opportunity -- it might be wise to watch Tesla from the sidelines for the time being. If you're already a shareholder, there's no reason to sell. But know that, right now, the company seems to be facing an identity crisis: is it a robotaxi company, a car manufacturer, or a developer of AI and robotics? It might be wise to wait to invest in Tesla until its strategy forward is more certain. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $356,261!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $38,291!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $657,385!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of June 2, 2025 Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends BYD Company. The Motley Fool has a disclosure policy. BYD Just Added Another Problem to Tesla's Long List was originally published by The Motley Fool 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
Time of India
2 days ago
- Business
- Time of India
Morgan Stanley bull has this prediction for Elon Musk's EV company Tesla
Morgan Stanley auto analyst Adam Jonas has predicted that Elon Musk may be "tempted to solve" another "problem" by leveraging Tesla's expertise in artificial intelligence (AI), batteries and manufacturing. As per Jones, the problem is "commercialising air taxis," also known as electric vertical take-off and landing (eVTOL) vehicles. In his latest research note, Jonas argued that Tesla may enter the nascent eVTOL market as these aircraft have long been predicted to revolutionise urban transport, yet even leading developers like Archer Aviation are still in the developmental phase. Last week, Archer's Midnight prototype, slated for its first deliveries later this year to Abu Dhabi, successfully completed a piloted flight test. Tesla may not be interested in eVTOL anytime soon According to a report by Fortune, while Jonas believes that solving this technological challenge aligns with the interests of Tesla engineers, he acknowledged that Tesla has indicated it is currently too stretched to seriously consider an eVTOL venture, without outright refuting the idea. The US government is reportedly keen on supporting the growth of flying cars. Transportation Secretary Sean Duffy posted this week, "eVOTLs [sic] are going to fundamentally transform how the public travels. Let's make sure the US leads the way." Why eVTOL market may not a profitable bet yet Currently, the eVTOL market faces significant hurdles. Several promising startups, including Lilium and Volocopter, have encountered financial difficulties before establishing commercially viable services. A key challenge in achieving stringent safety standards while ensuring full autonomy, as scaling the business typically requires removing costly pilots from the equation. Additionally, there aren't enough customers with pilot licenses to support widespread adoption.
Yahoo
3 days ago
- Automotive
- Yahoo
The next market Tesla could disrupt in the future is flying cars, Morgan Stanley predicts
Visionary entrepreneur Elon Musk might be tempted to solve the problem of commercializing air taxies, also known as electric vertical take-off and landing (eVTOL) vehicles, argued Morgan Stanley autos Analyst Adam Jonas. Most Tesla stock analysts tend to focus predominantly on the company's core car business when valuing the company—but not so Adam Jonas. In his latest research note, the Morgan Stanley bull argued Tesla could leverage its expertise in artificial intelligence, batteries and manufacturing to enter the fledgling market for air taxies, also known as electric vertical take-off and landing vehicles (eVTOLs). For years these aircraft have been predicted to revolutionize urban transport, but so far even leading providers like Archer Aviation are still in development. Last week, its Midnight prototype, which is scheduled for its first deliveries later this year to the Gulf emirate of Abu Dhabi, successfully completed a piloted flight test. While Jonas believes solving this technological problem is exactly the kind of challenge Tesla engineers love to tackle, he acknowledged that Tesla, while not refuting the idea outright, said it was stretched too thin to seriously contemplate an eVTOL. 'In our opinion, that's a decidedly different type of answer,' he wrote to clients, according to a report by Teslarati. 'Is Tesla an aviation/defense-tech company in auto/consumer clothing?' Fortune could not independently verify Jonas' comments and Tesla did not respond to a request for a statement. The Trump administration is likewise interested in supporting the emergence of flying cars as a mode of transportation. 'eVOTLs [sic] are going to fundamentally transform how the public travels. Let's make sure the U.S. leads the way,' transportation secretary Sean Duffy posted on Monday. At present the eVTOL market could use any help it can get. Many promising startups including Lilium and Volocopter ran into financial difficulties before they could develop a commercially viable service. Part of the problem is eVTOLs need to achieve very high safety standards while at the same time remaining fully autonomous, because scaling up the business typically means removing costly pilots from the equation. Nor can enough customers be found that possess a pilot license. Whether Tesla would ever enter the market is debatable, though. On the one hand, Tesla CEO Elon Musk has been clear about where his focus lies. All attention is currently on its autonomous ride hailing fleet set to begin operations this month in Austin; the commercialization of its prototype CyberCab dedicated robotaxi; and bringing the Optimus humanoid robot to market. On the other, Musk is a chameleon who not only pivoted Tesla from its EV focus to AI-enabled robotics, but also convinced shareholders that staying invested will eventually pay off handsomely once he commercializes his prototype droid Optimus. Moreover aeronautics is the chief expertise of Musk's other main company, SpaceX, allowing for a potential collaboration. Jonas' eVTOL idea isn't the first time he's openly suggested a new business idea that could capture the imagination of investors. The Morgan Stanley auto analyst once argued to clients that Tesla should consider taking on Apple in the lucrative smartphone market. Recently he has become increasingly concerned about the growing competitive threat posed by Chinese EV brands, whose offerings like the Xiaomi YU7 crossover potentially offers superior value-for-money than Tesla's own rival Model Y—or any other western competitor. 'China may have already won the EV battle,' Jonas wrote late last month, adding this 'explains why Tesla is moving away from 'car' and going all-in on autonomy.' This story was originally featured 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
Time of India
3 days ago
- Automotive
- Time of India
Morgan Stanley bull has this prediction for Elon Musk's EV company Tesla
Morgan Stanley auto analyst Adam Jonas has predicted that Elon Musk may be "tempted to solve" another "problem" by leveraging Tesla's expertise in artificial intelligence (AI), batteries and manufacturing. As per Jones, the problem is "commercialising air taxis," also known as electric vertical take-off and landing (eVTOL) vehicles. In his latest research note, Jonas argued that Tesla may enter the nascent eVTOL market as these aircraft have long been predicted to revolutionise urban transport, yet even leading developers like Archer Aviation are still in the developmental phase. Last week, Archer's Midnight prototype, slated for its first deliveries later this year to Abu Dhabi, successfully completed a piloted flight test. Tesla may not be interested in eVTOL anytime soon According to a report by Fortune, while Jonas believes that solving this technological challenge aligns with the interests of Tesla engineers, he acknowledged that Tesla has indicated it is currently too stretched to seriously consider an eVTOL venture, without outright refuting the idea. The US government is reportedly keen on supporting the growth of flying cars. Transportation Secretary Sean Duffy posted this week, "eVOTLs [sic] are going to fundamentally transform how the public travels. Let's make sure the US leads the way." Why eVTOL market may not a profitable bet yet Currently, the eVTOL market faces significant hurdles. Several promising startups, including Lilium and Volocopter, have encountered financial difficulties before establishing commercially viable services. A key challenge in achieving stringent safety standards while ensuring full autonomy, as scaling the business typically requires removing costly pilots from the equation. Additionally, there aren't enough customers with pilot licenses to support widespread adoption.
Yahoo
27-05-2025
- Business
- Yahoo
Tesla's (TSLA) Supply Strategy Supports Morgan Stanley's Bullish Outlook
With an unchanged price target of $410, Morgan Stanley analyst Adam Jonas maintained a Buy rating on Tesla Inc. (NASDAQ:TSLA). In his latest note, on May 27, Jonas emphasizes Tesla's strong execution in overcoming operational hurdles and its solid positioning in the electric vehicle (EV) market. A key concern raised by Jonas was Tesla's reliance on advanced technologies, such as permanent magnets, which are heavily dependent on rare earth elements, primarily produced in China. This poses a risk for the company due to China's recent restrictions on the export of rare earth elements, which could lead to disruptions in its supply chain. Pixabay/Public Domain In an apparent response to the US-imposed tariffs, China added seven rare-earth minerals to its export control list in April. China now imposes strict licensing requirements to limit their use in military applications. Despite these challenges, Jonas remains positive on Tesla due to its proactive and flexible approach. The company is collaborating with Chinese authorities to secure export permits and is concurrently exploring alternative sources, while also increasing its investment in domestic LFP (lithium iron phosphate) battery production. These steps aim to secure critical materials and reduce long-term risk. Tesla's continued innovation and growing demand for electric vehicles remain key drivers of Jonas' Buy rating. He believes the company's adaptability and leadership in clean energy solutions provide a solid foundation to mitigate near-term supply challenges. Tesla is an EV manufacturer and clean energy company known for its innovative approach to sustainable transportation and energy solutions. It designs, manufactures, and sells electric vehicles, battery energy storage systems, solar products, and related services. While we acknowledge the potential of TSLA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TSLA and that has 100x upside potential, check out our report about the cheapest 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. 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
