Tesla Faces 'Formidable Bear Case' Over Apple's EV Plans, Says Morgan Stanley

Morgan Stanley analyst Adam Jonas says Apple Inc AAPL reportedly venturing into electric vehicles creates a new “bear case” for Tesla Inc TSLA.

The Tesla Analyst: Jonas gave Tesla a Buy-equivalent rating in a note Tuesday and assigned a price target of $540 for the stock, which is almost 15% below the stock’s closing price on Tuesday, as reported by Bloomberg.

Thet Tesla Thesis: “Apple’s potential entry into autos represents perhaps the most credible/formidable bear case for Tesla’s stock that investors have had to consider for some time,” wrote Jonas.

Apple’s foray into vehicles could spell trouble for not only the Elon Musk-led company but also traditional automakers such as Ford Motor Company F and General Motors Company GM, as per Jonas.

Jonas theorized that Apple’s plans could mean a “significant inflection in the speed and magnitude of a wide range of investments” for suppliers of electric, autonomous, and connected-car systems, according to Bloomberg.

Tesla Price Action: Tesla shares closed nearly 1.5% lower at $640.34 on Tuesday and fell 0.94% in the after-hours session.

Related Link: Unlike Tesla, Apple's Worth Based On Lifetime Value Of Customer Base — Cramer Sees 'Upside' In EV Foray

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