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Tesla a Bargain as It Nears Morgan Stanley Bear Case

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After losing nearly $300 billion in market value in two months, a growing chorus of Tesla Inc. analysts are saying the share-price decline has gone far enough.Morgan Stanley analyst Adam Jonas said on Wednesday that Tesla is approaching his “bear case” price target of $150, presenting an opportunity for investors to buy at a bargain price.

Citi analysts today upgraded the shares to neutral from sell, saying that a more than 50% slump this year “has balanced out the near-term risk/reward.”Despite challenges including decelerating demand and price cuts in China, Tesla is the only electric vehicle maker covered by Morgan Stanley that generates a profit on the sale of its cars, Jonas wrote in a note.

The analyst -- who also highlighted Tesla's potential to benefit from consumer tax credits in the US -- reiterated his $330 price target.Shares rose 1.5% in premarket trading to $172.40.

The stock has slumped this year amid rising raw materials costs, issues with production and sales in China and pressure on customer budgets.

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