NEW YORK (TheStreet) -- TheStreet's Jim Cramer says he is skeptical about Morgan Stanley's (MS) report on Tesla Motors (TSLA) in which the firm cut its expectations on the electric car company's 2015 Model X deliveries but reiterated its price target and encouraged investors to buy it more than ever.
Cramer says he is so old school that even though people love this cult stock, it makes him blanch. The idea that Tesla could have some execution problems concerns him.
Cramer advises investors who love Tesla stock to look at the Morgan Stanley report to at least test their conviction. Cramer says the report is "devastating" in all aspects except the price target, where Morgan Stanley remains bullish.
TheStreet Ratings team rates TESLA MOTORS INC as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TESLA MOTORS INC (TSLA) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and weak operating cash flow."
- You can view the full analysis from the report here: TSLA Ratings Report