TSLA Stock Price: $900 Target From Morgan Stanley

By Amit Chowdhry ● June 20, 2021
  • The shares of Tesla Inc (NASDAQ: TSLA) have received a price target of $900 from Morgan Stanley. These are the details.

The shares of Tesla Inc (NASDAQ: TSLA) have received a price target of $900 from Morgan Stanley. And Morgan Stanley analyst Adam Jonas reiterated an “Overweight” rating on the company shares.

Jonas based the rating and price target upon taking a close look at the company and noting that the shares had experienced a “blow-off-top” in the second half of 2020 and packed 5 years of performance into 5 months. This year, Tesla shares had underperformed the broader market along with broader technology and other automotive peers. 

“Let’s begin with a healthy dose of intellectual honesty on the starting point for the stock,” wrote Jonas in the research note via Barron’s. “Even bulls should admit that the rise in the stock price during the second half of 2020, while perhaps deserved in principle, was packed into a highly concentrated time frame.” 

Going forward, Jonas said that there are 5 things that could drive the stock forward.

1.) Capacity extension mostly outside of China through the opening of the facilities in Berlin and Austin. These facilities would give Tesla an opportunity for introducing unit economics that would be superior to the Fremont-based facility.

2.) Model expansion as Tesla is achieving most of its nearly 1 million unit run-rate with mostly 2 models: the Tesla Model 3 and Tesla Model Y.

3.) Battery manufacturing expansion like a third-party supply to other OEMs.

4.) An expansion of service offerings to a wider range of its vehicles including via subscription

5.) And Tesla’s entrance into the property and casualty (P&C) insurance market is expected to serve as an important signal for investors as to the potential for auto companies to monetize the company’s connected car real estate.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.