Blockchain Market to See Spillover as Morgan Stanley Cuts Tesla’s Price Target

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Blockchain markets are set to brace for the impact from one of its biggest future customers. Morgan Stanley (MS) on Thursday lowered Tesla’s price target. The fall in potential price target comes at a time when demand in EV markets is dwindling, with big EV giants trying to maintain a stable cash flow position.

Morgan Stanley Lowers Tesla’s Price Target

According to a Yahoo Finance report, MS has lowered its price target for Tesla from $345 to $320 citing worries about the market’s persistent EV demand lag despite price reductions, fleet companies like Hertz disposing of EVs, and “strong hybrid momentum” driving away hesitant EV customers. The reason cited was also very evident in Tesla’s quarterly results. Tesla’s fourth-quarter earnings were slightly lower than projected by analysts. The business declared 71 cents in adjusted earnings per share. Analysts predicted that the company will have an average EPS of 74 cents.

Read Also: Bitcoin (BTC) Price Reclaims $68,000 As Bullish Sentiment Resumes

How Does the EV Industry Use Blockchain?

The electric vehicle (EV) industry is utilizing blockchain in a few different aspects. Future cars will almost certainly be mostly electric, predicts Forbes. Ease of use and convenience for consumers will likely increase with the incorporation of blockchain-based technology in the EV sector. Two major factors make owning an EV challenging. Initially, the cars were expensive, and there were no charging outlets available. To address these problems with electric car operation, blockchain technology is available. Users of electric vehicles (EVs) can also utilize blockchain-based websites, applications, and notification systems to search and locate charging stations.

According to McKinsey research, blockchain technology can offer the foundation for complex networks that control sales, distribution, commerce, and payment processing. The utilization of blockchain technology and smart contracts can accelerate and reduce transaction costs, hence reducing pain points and friction along the entire power value chain.

Will EV Downturn Affect the Blockchain Market?

A downturn in EV markets could lead to a major portion of revenue and a decline in blockchain customers given the much higher planned growth. However, blockchain’s expansion into several other consumer groups, such as financial institutions, oil and gas, international trade, etc., can limit the volatility in one market.

The post Blockchain Market to See Spillover as Morgan Stanley Cuts Tesla’s Price Target appeared first on CoinGape.

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