Morgan Stanley on Monday raised its price target for Tesla from $400 to $430, while renewing its 'overweight' recommendation on the stock.
According to the analyst, Wall Street is increasingly beginning to realize just how crucial AI-related functionalities are set to play in the highly competitive electric vehicle market.
Given Tesla's recent stock market rally, Morgan Stanley believes that investors seem to have a better understanding of the group's advantages in data, robotics, energy storage, AI, manufacturing and infrastructure, not to mention the synergies potentially associated with Elon Musk's other companies, such as SpaceX or xAI.
Even so, the research firm expects the financial community to become fully aware this year of Tesla's unique combination of expertise, over and above the current difficulties in the electric vehicle market, a factor which it believes should enable its multiples to continue to rise.
With the favorable AI theme, his bull case price target has been raised to $800, from $600 previously, with the stock remaining one of his current top picks.
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Mr. Elon R. Musk is a Chief Executive Officer at The Boring Co., a Technoking of Tesla at Tesla, Inc., a Chief Executive Officer & Director at Space Exploration Technologies Corp., a Chief Executive & Technology Officer at Spacex SA and a Co-Chairman at OpenAir, Inc. He is on the Board of Directors at Tesla, Inc., Space Exploration Technologies Corp., Endeavor Group Holdings, Inc. and Musk Foundation. Mr. Musk was previously employed as a Trustee by California Institute of Technology, a Chairman by SolarCity Corp., a Chairman & Chief Executive Officer by PayPal, Inc., a Founder by Zip2 Corp., a Co-Founder by Neuralink Corp., a Co-Founder by OpenAI, Inc., a Non-Executive Director by Surrey Satellite Technology Ltd., and a Trustee by X PRIZE Foundation. He also served on the board at Everdream Corp. He received his undergraduate degree from the University of Pennsylvania and an undergraduate degree from The Wharton School of the University of Pennsylvania.
Tesla, Inc. designs, builds, and sells electric vehicles. Net sales break down by activity as follows:
- sale of automotive vehicles (74.2%);
- services (10.8%): primarily maintenance and repair services. The group also develops sale of power train assembly components for electric vehicles activity;
- sale of energy generation and storage systems (10.3%);
- automotive credits (2.8%);
- automotive leasing (1.9%).
At the end of 2024, the group had 8 manufacturing sites located in the United States (5), China (2) and Germany.
Net sales are distributed geographically as follows: the United States (48.9%), China (21.4%) and other (29.7%).