While the spotlight might currently be on General Motors Company (NYSE:GM), it’s hard to forget about the wildly successful, and lately fiery, Tesla Motors Inc (NASDAQ:TSLA). Morgan Stanley analyst Adam Jonas has harnessed the success of Tesla and made it work to his advantage. His recommendations have earned him a +10.9% average return over S&P 500 (INDEXSP:.INX) and has moved him to the number 58 spot out of 2309 analysts.
Buy ratings for Tesla
Earlier in December, Adam reiterated his BUY Tesla Motors Inc (NASDAQ:TSLA) rating, vocalizing his true feelings about the company by saying, “Investors who resisted buying into the momentum peak have a new chance to own a good and well-managed company with proof of concept and exceptional top-line optionality…While Tesla Motors still has a lot to prove to fundamentally justify its valuation, we believe the stock offers a better risk-adjusted return vs. any other stock in our US auto coverage.” Following this statement and his advice to BUY Tesla Motors Adam earned +2.9%.
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But more impressively, earlier this year, Adam’s BUY Tesla Motors Inc (NASDAQ:TSLA) recommendation brought him +78.1%! At the time Adam said “that the auto industry is facing some tough time presently owing to the weakening of the Japanese yen, decline in North American capacity and pricing for used vehicles.” He also mentioned that certain stocks should be avoided in the auto sector including, “The Goodyear Tire & Rubber Company (NASDAQ:GT), Harman International Industries Inc./DE/ (NYSE:HAR), Tenneco Inc (NYSE:TEN), Hertz Global Holdings, Inc. (NYSE:HTZ) and Avis Budget Group Inc. (NASDAQ:CAR).” But, Adam was convinced that Tesla stock was, “worth $109 on a 15 –year Discounted Cash Flow,” and recommended BUY Tesla Motors. This time Adam received a +78.1% measured performance relative to S&P-500.
Tesla Motors’ sell ratings
And back when consumers were just warming up to Tesla and the electric car, Adam knew when to SELL Tesla Motors Inc (NASDAQ:TSLA) to come out on top. In 2011 Jonas said, “electric vehicles overall are not ready for prime time and will be slow to catch on with drivers.” Adam acknowledged that sales would be slower than investors expected and recommended SELL Tesla Motors, landing him +4.2%.
While, not always right with a success rate of 63% and his loss of -8.1% with his recommendation to BUY Ford Motor Company (NYSE:F) stock, Adam is surely an analyst to follow when considering auto industry stocks.
To see what Adam has to say next about Tesla Motors Inc (NASDAQ:TSLA) and other auto industry stocks, download TipRanks. With TipRanks you can follow analyst recommendation histories and learn who to trust for financial advice.