Tesla (TSLA) Stock Can Rally 90% Higher, Says Morgan Stanley

Tesla (TSLA) stock has received a bullish new report from investment bank Morgan Stanley (MS).

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Adam Jonas, a top four-star rated analyst, is encouraging investors to grab TSLA stock in the midst of its current decline, saying a bottom might be insight. Jonas reiterated his Buy-equivalent overweight rating and top-pick designation on Tesla’s stock. His current price target on the shares of $430 implies 93.6% upside from current levels.

“We see the pullback as a buying opportunity for an embodied [artificial intelligence] compounder,” wrote Jonas in a note to clients. The positive outlook for TSLA stock comes after the share price plunged 15% on March 10 for its worst one-day performance since the Covid-19 pandemic struck five years ago.

Upside Ahead?

TSLA stock is now down about 50% from a record high reached last December. That decline comes amid weak sales figures and a consumer backlash against the company’s electric vehicles in protest of company CEO Elon Musk’s involvement with the Trump administration.

Jonas acknowledges that “brand degradation” and declining sales have taken over the Tesla narrative and replaced the company’s leading role in AI and humanoid robot development. The analyst says TSLA stock could fall as low as $200 before rebounding on company-specific catalysts. He encourages investors to take a long-term view of TSLA stock.

Is TSLA Stock a Buy?

Tesla stock currently has a consensus Hold rating among 36 Wall Street analysts. That rating is based on 13 Buy, 11 Hold, and 12 Sell recommendations issued in the last three months. The average TSLA price target of $340.31 implies 48.26% upside from current levels.

Read more analyst ratings on TSLA stock

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