Tesla Stock Drops Despite Court Victory In Mass.

After the dust settled in the Nevada legislature from last week’s drawn-out approval of Tesla new Gigafactory, the company continues to be in the news today.

Perhaps the most important nugget came from analyst Adam Jonas from Morgan Stanley — described by Automotive News as “one of Tesla Motor Inc.’s strongest supporters on Wall Street” — tried to put the brakes on the EV-maker’s soaring stock prices.

Jonas wrote that he agreed with Elon Musk’s earlier statements that “the share price was a bit ahead of itself,” and had four points for consideration: the poor performance of EVs globally, potentially limited success in China, the lack of breakthroughs needed to make EVs a mainstream choice, and the upcoming threat of driverless cars.

“We are big believers in Tesla’s strategy and stand firmly by our claim that it is the world’s most important car company,” Jonas concluded. “But we do not expect the stock to appreciate so consistently and one-directionally from here.”

SEE ALSO: Nevada Approves Tax Breaks for Tesla

After Jonas’ report was released, Tesla shares fell 9.1 percent (or $25.34) to $253.86, but have still gained nearly 70 percent so far this year.

The positive news coming out of Massachusetts at the same time didn’t seem to affect the stock price, but will certainly help the company in the long run after Tesla can continue selling its cars directly to customers.

“The state’s Supreme Judicial Court unanimously concluded that the Massachusetts State Automobile Dealers Association and two dealers lacked standing to block direct Tesla sales under a state law designed to protect franchise owners from abuses by car manufacturers,” wrote AN.

This was the second time the association failed to get the Tesla showroom in Natick, Mass. closed after its suit was initially dismissed near the end of 2012.

AN