Tesla (TSLA) gets higher price target from Morgan Stanley

Tesla (NASDAQ:TSLA) has received a higher price target from Morgan Stanley. 

As per the global financial services firm, its updated valuation is partly due to Tesla’s advancements in its autonomous driving program, as well as the company’s work in artificial intelligence.

Morgan Stanley’s update: 

• Morgan Stanley analysts led by Adam Jonas have adjusted their price target for Tesla stock from $400 to $430 per share. 
• The analysts also provided a bull case valuation of $800 per share for TSLA, as well as a bear case valuation of $200 per share.
• The analysts highlighted the potential of Tesla’s autonomous vehicle business.
• Tesla’s mobility fleet is expected to grow to 7.5 million vehicles by 2040, with estimated revenues of $1.46 per mile and a 29% EBITDA margin, as noted in an Investing.com report.
• Jonas also noted that Tesla could debut its unsupervised autonomous vehicle fleet in a city setting by next year, though widespread deployment might not happen until after 2030.

TESLA $TSLA price-target raised to $430 (from $400) with an $800 bull-case, by Morgan Stanley analyst Adam Jonas:

“As interest in AVs continues to rise, we have undertaken the most extensive re-architecture and expansion of our Tesla Mobility (robotaxi) model since initially…

— Stock Talk (@stocktalkweekly) January 13, 2025

Analyst Comments:

• “As interest in AVs continues to rise, we have undertaken the most extensive re-architecture and expansion of our Tesla Mobility (robotaxi) model since initially published in 2015. While autos still matter, we see embodied AI as the driver for upside to revised $800 bull case. Reiterate Top Pick.
• “Investors increasingly acknowledge the relevance of embodied AI in a highly competitive and complex geopolitical environment. In our view, Tesla’s recent share price appreciation has begun to discount the expanding ‘surface area’ between Tesla and physical AI including the company’s natural advantages in terms of data collection, robotics, energy storage, AI/compute, manufacturing and supporting infrastructure – including the benefits of working across Elon Musk’s other companies (SpaceX, xAI, etc).
• “However, we still see scope for 2025 to be a year where the market’s appreciation for Tesla’s unique combination of skills can be further reflected in the multiple, offsetting the relatively well-known challenges to the FY25 EV market. As we look ahead to FY25 and beyond, we expect to see TSLA’s TAM aperture further expand to broader domains, many of which are still not included in buyside or sell-side financial models for the company.”

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