Morgan Stanley no longer offers stock coverage on Tesla's stock, the second company to drop its share rating on the electric car manufacturer since CEO Elon Musk announced plans via Twitter to take the company private.
Tesla declined to comment. Morgan Stanley could not be reached for commentary to explain why it dropped Tesla. However, some speculate that the brokerage firm could play a role in Tesla's plan to become a private company.
The Morgan Stanley website no longer shows a share valuation or target price on Tesla. The shares of Tesla were previously assessed at "equal weight & # 39; The move, which was reported by Bloomberg, caused the Tesla shares to rise on Tuesday. Shares closed at $ 321.90, about 3.6 percent higher than the opening price.
Morgan Stanley analyst Adam Jonas, an old bull from Tesla, had a target price of $ 291 on the company. In his latest research on 7 August, Jonas explained that Morgan Stanley placed an equivalent weight mark on the company because it supports near real value and "no more attractive investment on a risk-adjusted basis than the average stock under our NA coverage."
Last week, Goldman Sachs Group lowered its Tesla rating and price target, although it provided an explanation for the move. The company makes its entry to advise Musk and the board of Tesla about the private taking of the company.
Musk & # 39; s tweet August 13 provided more details, including that the company is working with Silver Lake and Goldman Sachs as advisers. The company has hired Wachtell, Lipton, Rosen & Katz and Munger, Tolles & Olson as legal advisers.
Musk first drove the idea to take Tesla privately at $ 740 per share on August 7 through a tweet that prompted the US Securities and Exchange Commission to investigate.