- Morgan Stanley’s Adam Jonas maintains an ‘Overweight’ rating on Tesla (TSLA) with a $430 price target despite recent challenges.
- Tesla stock has plummeted 43% over three months and 49% from its 52-week high of $488.54 due to weak sales and backlash against Elon Musk.
- The analyst views the current pullback as a buying opportunity, suggesting Tesla’s AI and robotics potential outweighs short-term “brand degradation.”
Tesla (TSLA) stock has recently attracted the attention of Morgan Stanley’s (MS) Adam Jonas, who highlights potential value emerging from the electric vehicle maker’s recent price drop. Jonas has maintained his ‘Overweight’ rating and designated Tesla as a top pick, setting a price target of $430 – representing a 72% upside from the recent close of $249.98.
The Morgan Stanley analyst characterized the current pullback as “a buying opportunity for an embodied [artificial intelligence] compounder,” suggesting that Tesla’s long-term value proposition extends beyond its electric vehicle business into artificial intelligence and robotics.
This optimistic outlook comes against a backdrop of serious challenges for Tesla. The stock experienced a dramatic 15% single-day plunge on March 10, marking its worst performance since the COVID-19 pandemic. Over a longer timeframe, Tesla shares have shed 43% of their value in the past three months and currently sit 49% below their 52-week high of $488.54.
Multiple factors have contributed to this decline, including disappointing sales figures and consumer backlash related to CEO Elon Musk’s connections with the Trump administration. Jonas acknowledges that “brand degradation” and sales concerns have overshadowed Tesla’s innovations in artificial intelligence and humanoid robotics development.
Despite these headwinds, Jonas believes the stock could find support after potentially falling to around $200 per share. He emphasizes the importance of focusing on company-specific catalysts that could drive a recovery, advocating for investors to take a longer-term perspective on Tesla’s prospects rather than reacting to short-term volatility.
Tesla’s ability to use its technological advantages in AI and robotics may ultimately prove more valuable than current market sentiment suggests, according to this analysis. While acknowledging the real challenges facing the company, Jonas’s assessment points to potential undervaluation for investors willing to weather near-term turbulence.
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