- Tesla’s (TSLA) stock jumped over 3% to $303.94 intraday Monday after Morgan Stanley’s (MS) Adam Jonas set a $430 target (50% above Friday’s $292.98 close) and a bull case of $800, but ended 2.64% down, reflecting mixed views on its AI and robotics shift.
- Jonas predicts a 2025 delivery decline yet sees it as an investor entry point, emphasizing Tesla’s transition from an EV focus to a broader AI and robotics play, despite a 26% month-over-month drop tied to slumping sales and Musk’s political involvement.
- The stock has lost nearly all its 40% post-election gain from a $479.86 peak in mid-December, with Jonas highlighting non-auto AI opportunities as larger and faster-growing than autonomous cars, fueling Tesla’s next chapter.
Tesla’s (TSLA) stock experienced a volatile Monday, surging more than 3% to an intraday peak of $303.94 after Morgan Stanley’s (MS) Adam Jonas reinstated it as a top auto sector pick with a $430 price target – about 50% above Friday’s $292.98 close – before erasing gains to trade 2.64% lower, reflecting the market’s mixed reception to its shifting identity. Jonas sees Tesla evolving beyond a pure EV maker into a powerhouse of AI and robotics, projecting a potential bull case of $800, even as he anticipates a year-over-year drop in 2025 deliveries, a decline he views as an investor opportunity amid a nearly 26% stock slide month-over-month driven by slumping EV sales. The analyst’s optimism hinges on the vast commercial potential of Tesla’s non-auto AI ventures, which he deems larger and faster-growing than autonomous vehicles, a pivot underscored by the stock’s retreat from a 40% post-election rally that peaked at $479.86 in mid-December.
Elon Musk’s high-profile political engagement has sparked debate about its impact on Tesla’s brand, with February’s sales dip fueling speculation of buyer backlash, yet Jonas frames the delivery softness as a strategic inflection point rather than a fatal blow. Tesla’s AI and robotics ambitions – spanning projects like humanoid robots and advanced neural networks – position it to tap into markets beyond transportation, a diversification that could offset EV market saturation and rising competition from rivals like BYD. Despite shedding nearly all its post-election gains, the stock’s intraday spike to $303.99 signals lingering investor faith in Musk’s vision, though the midday reversal to a 2.64% loss highlights persistent uncertainty about balancing Tesla’s core business with its futuristic bets in a choppy economic climate.
WallStreetPit does not provide investment advice. All rights reserved.
Leave a Reply