Tesla's stock received a boost on January 13th following Morgan Stanley's decision to raise its price target for the electric vehicle giant from $400 to $430. The financial services firm cited Tesla's advancements in autonomous driving and artificial intelligence as key factors for the revised valuation. Morgan Stanley analysts, led by Adam Jonas, highlighted the potential of Tesla's autonomous vehicle business, projecting a significant expansion of Tesla's mobility fleet to 7.5 million vehicles by 2040. The analysts also provided a bull case valuation of $800 per share, emphasizing the growing interest in autonomous vehicles and Tesla's competitive edge in embodied AI.
The analysts noted that Tesla's recent share price appreciation reflects the expanding "surface area" between Tesla and physical AI, including advantages in data collection, robotics, energy storage, and manufacturing. They believe that 2025 could be a pivotal year for the market to further appreciate Tesla's unique combination of skills, despite challenges in the electric vehicle market. Morgan Stanley maintains an Overweight rating on Tesla shares, reiterating the company as a "Top Pick" due to its material competitive advantage in both existing and emerging industries.
Tesla (TSLA) shares closed at $403.31 on January 13th, marking a 2.17% increase from the previous close of $394.74. After the market closed, the stock continued to rise, reaching $408.76, a 1.35% increase.