Tesla Motors Inc. acquisition of SolarCity Corp. brings “zero value” for Tesla shareholders, Morgan Stanley analysts said in a note Wednesday.

The analysts tweaked their price target on Tesla TSLA, -10.34% stock to $242 from $245. Tesla’s better-than-expected third-quarter earnings were offset by Tesla issuing more than 13 million shares in relation to the SolarCity MX:SCTY deal, they said.

“Given (SolarCity’s) financial condition and recent reduction in guidance, we have assumed zero value for (SolarCity) equity to (Tesla) shareholders,” the analysts said. Tesla’s “ultimate outcome” and share performance will continue to be dominated by its core automobile and transportation business, they said.

Read more:Next for Tesla and SolarCity: The lawsuits

“The bigger mission remains developing a sustainable transportation ecosystem,” the analysts said. They estimated that Tesla’s global fleet drives about 5 million miles a day, with about a third of these miles on Autopilot, Tesla’s suite of advanced driver assistance systems.

The pace of daily miles traveled is expected to double in one year, leaving Tesla poised to push state-of-the-art algorithmic driving and machine learning in personal transportation, the analysts said.

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Morgan Stanley’s new price target represents about 30% upside for Tesla shares. The investment bank kept its rating on the stock at neutral, given the “high degree of cash consumption and dependency on external market funding” post SolarCity’s acquisition.

Shareholders approved the $2.6 billion deal last week.

See also:Tesla, SolarCity shareholders approve merger

On average, analysts have a price target of $225 on Tesla shares and a hold rating, according to FactSet.