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Desire for Tesla Drops ‘Significantly’ in Morgan Stanley Survey

Published 08/12/2022, 07:19 AM
Updated 08/12/2022, 07:25 AM
© Reuters Desire for Tesla (TSLA) Drops ‘Significantly’ in Morgan Stanley Survey

By Michael Elkins

Morgan Stanley reiterated an outperform rating and $1150.00 price target on Tesla (NASDAQ:TSLA) following Morgan Stanley’s 4th Annual Intern Survey.

The Survey of ~500 Morgan Stanley interns is a way for investors to peer into the preferences of a future generation of business leaders and commercial influencers. Preference to buy an electric car was flat y/y at 30%, a rate that is roughly equal to Morgan Stanley’s 2030 US EV penetration forecast.

According to the survey, Tesla's desirability amongst the interns fell significantly YoY to 19%, barely ahead of Mercedes (ETR:MBGn) at 17%.

An analyst noted that despite Tesla’s drop in desirability, YTD, Tesla has sold over 50% more vehicles in the US than total BMW US sales. Tesla's YTD market share in the state of California (1H22) is approaching 11% (of all vehicles, hybrid + EV +ICE). Tesla is still the most desirable car brand among interns vs. peers. However, 2022 marks the first year that intern preference for Tesla fell below 30% in 3 years.

Tesla also took a hit as the most trusted for autonomous service, to 35% (compared to 39% last year).

The analyst notes that the survey results may represent the possibility of brand fatigue, as the electric car giant continues to hold an overwhelming share of EV sales and a growing proportion of total auto sales. The results may simply be the product of an unmet desire for alternative electric vehicle options.

TSLA is trading up 0.98% in pre-market at the time of this posting.

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