Analysts at investment bank Morgan Stanley believe a considerable appreciation for Tesla (TSLA), the company of billionaire bitcoiner Elon Musk.

Morgan Stanley analyst and research leader Adam Jonas updated his target price for shares in Musk’s electric car maker to $1,200 on Wednesday afternoon.

This change represents a $100 decrease from its previous target of $1,300, which is explained by the belief that “car delivery may fall short of expectations” in the second quarter. However, if Tesla shares reach the $1,200 Jonas expected it would represent an increase of 70% in relation to the current price of $708.

Tesla TSLA quote
TSLA price chart, which has risen 823% in the last 5 years.

For the researcher, the shares should not perform as well as he imagined due to an increase from 8.5% to 9% in the Weighted Average Cost of Capital (WACC – Weighted average cost of capital).

If the second quarter is indeed weaker in car deliveries, Jonas suggested it would be worth taking the moment to “buy the weakness”.

The analyst cut its second-quarter delivery estimate to 270,000 units from 316,000 units previously. Tesla currently dominates about 75.8% electric car market share in the United States.

Notably, the Elon Musk-led company also holds around 40,000 bitcoins in cash, which currently represents an unrealized loss for the company given the cryptocurrency’s recent declines.

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