Tesla (TSLA) gets higher price target from Morgan Stanley
Yesterday at 10:19 AM
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 has adjusted his 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.
Morgan Stanley Raises $TSLA PT to $430 from $400 – Overweight
— Wall St Engine (@wallstengine) January 13, 2025
Analyst comments: "As interest in autonomous vehicles (AVs) continues to rise, we have conducted the most extensive re-architecture and expansion of our Tesla Mobility (robotaxi) model since its initial publication in…
Analyst Comments:
- “As interest in autonomous vehicles (AVs) continues to rise, we have conducted the most extensive re-architecture and expansion of our Tesla Mobility (robotaxi) model since its initial publication in 2015. While autos remain important, we view embodied AI as the key driver for upside, reflected in our revised $800 bull case. We reiterate Tesla as a Top Pick.
- “Investors increasingly recognize the relevance of embodied AI in a competitive and complex geopolitical landscape. Tesla’s recent share price appreciation reflects its expanding leadership in physical AI, leveraging natural advantages in data collection, robotics, energy storage, AI/compute, manufacturing, and infrastructure. These advantages are further enhanced by synergies across Elon Musk’s companies, such as SpaceX and xAI.
- “We see 2025 as a year where Tesla’s unique skillset could be further reflected in its valuation, despite well-known challenges in the FY25 EV market. Looking ahead, we expect Tesla’s total addressable market (TAM) to expand into broader domains, many of which are still not reflected in current financial models. To account for this, we have revisited and expanded assumptions in our Network Services and Tesla Mobility (autonomous rideshare) models, providing a framework for valuing Tesla’s growing presence in the embodied AI industry, where we believe it holds a significant competitive edge.”
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
The post Tesla (TSLA) gets higher price target from Morgan Stanley appeared first on TESLARATI.
