Written by Cláudio Afonso | LinkedIn | X
Morgan Stanley analyst Adam Jonas raised Tesla’s price target to $400 from $310 in a research note released on Tuesday, reaffirming an Overweight rating and naming Tesla as the firm’s top pick.
The analyst said that policy changes “present near-term headwinds to US EV sales but must not cede autonomous leadership to geopolitical rivals” adding that the firm sees “US SAAR [Seasonally Adjusted Annual Rate] >16mm supported by lower rates but higher competition with tariff hikes are an inflationary wild-card. “
“Prefer dealers to suppliers and reiterate TSLA as Top Pick,” Adam Jonas added in the research note. Tesla shares started the year trading at about $250 and dipped to below $140 in April. Since then, the stock has surged nearly 200%.
The firm updated its targets for next year a reviewed key industry themes, offering scenario analysis to help investors navigate debates around EV policies, onshoring/tariffs, China export expansion, and the emergence of autonomous vehicles.
“With 2025 ushering in a new administration, we refresh our 2025 auto forecasts, review key themes, and provide a scenario analysis to help investors frame the most relevant industry debates, including EV policies, onshoring/tariffs, China export expansion and the nascent emergence of autonomous vehicles,” the analyst wrote.
Registration data released this Tuesday showed that Tesla registered 21,900 vehicles in China between December 2 and 8, marking its third-highest weekly figure in the past three years.
Adam Jonas noted the impact of the president elected Donald Trump on the automotive market, highlighting a temporary gain for traditional internal combustion engine (ICE) vehicles.
“The US election result has extended the ‘ICE is Nice’ trade for a bit longer but keep on the lookout for hidden value in the EV ecosystem into the 2H. We recommend investors stay nimble and selective given the volatility of policy outcomes.”
Additionally, Cantor Fitzgerald’s analyst Andres Sheppard raised the firm’s price target on the stock by over $100.
“We are Increasing our Price Target on Tesla to $365 (from prior $255) as we Become More Bullish on Robotaxi and SelfDriving. However, We Remain Neutral on Valuation, and Await a Better Entry Point,” Sheppard stated in a new research. “We are becoming more bullish on Tesla’s Robotaxi segment, following President-elect Trump’s plans to potentially develop a federal framework for self-driving vehicles in the United States, and an update to the company’s FSD software.”
Globally, Tesla has stated it “expects to achieve slight growth in vehicle deliveries in 2024,” with plans to deliver more than 500,000 vehicles in a single quarter for the first time.
Written by Cláudio Afonso | LinkedIn | X
