Tesla will probably sell about 10% fewer cars this year than previously expected because the coronavirus outbreak weighs on demand for vehicles, Morgan Stanley said in a note on Thursday.
The bank now estimates Tesla will deliver 452,000 cars in 2020, down from the previous estimate of 500,000. Morgan Stanley also reduced its price target on the stock to $480 a share from $500 and kept its underweight rating.
Tesla's volumes will probably drop about 10% in Europe this year, hurt by the coronavirus and softening of incentives in markets such as Norway and the Netherlands, the report said.
Analysts are paring back forecasts for the industry as a whole as consumers stay away from showrooms and shun big ticket purchases.
"A Tesla is a high priced and discretionary purchase," the Morgan Stanley analysts wrote. "It is reasonable to assume that sentiment and financial strength for Tesla's backlog will likely in some way be impacted by the sharp correction in global markets as well as the concerns around public safety and interruption in personal mobility."
Shares of Tesla fell 1.7% to $634.23 in New York Wednesday.
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