Tesla Stock up 2% on Morgan Stanley Assessment
Tesla stock is on the rise today after a new assessment from Morgan Stanley puts their stock price target at $410.
Quick overview
- Tesla stock has gained 2.1% but is at a critical juncture, with concerns about potential downward trends after its recent peak.
- Morgan Stanley has set a price target of $415 for Tesla, indicating confidence that the stock will remain above recent lows.
- Declining EV sales in Europe have prompted Tesla to shift management and focus on robotics and AI to diversify revenue streams.
- Despite a 29% one-year return, investor concerns about profitability from AI investments are impacting Tesla and other tech companies.
Tesla (TSLA) stock has gained 2.1% and is at a critical juncture where it could trend downward after its peak, but a new Morgan Stanley might improve its trajectory.
On Wednesday, Tesla stock jumped 2% after Morgan Stanley set a price target for the electric automaker of $415. The current $426 stock price might be higher than that, but the $415 mark is higher than Tesla stock was earlier this month.
The price target demonstrates that the investment bank is confident that Tesla will remain above its recent low and could go higher soon. Shares for the company have ranged between $410 and $440 recently, so we anticipate another upward shift closer to the $440 mark soon.
Tesla Keeping to Average Stock Price
Over the last six months, Tesla stock reached a high of $489 and a low of $320. Its current price is above the six-month average, but not by much. If the stock price breaks past $440 once more, that could create a strong support level near there and help push the stock price much higher. A dip under $410 could be catastrophic, though, and could signal to investors that the stock is in trouble.
The company noticed that their EU sales have fallen lately, and they are moving around management for that region to compensate. In order to shift focus away from poor EV sales, the company is taking up its plans for robotics and AI.
There is rising concern among investors that companies like Tesla are putting too much money into AI and not seeing the profits that they should be from that long-tail technology investment. These concerns have hurt Tesla, Microsoft, Nvidia, and other leading tech companies in recent months, making it more important than ever for companies to demonstrate profitability.
The 1-year return on Tesla stock is 29%, and their 5-year return is 60%. However, declining EV sales across the globe are cutting into the company’s revenue, and they are actively working on other revenue streams to make up for that. The company is planning to release a new Tesla model, but their primary focus appears to be on Optimus robots, AI integration, and the robotaxi service that launched last year.
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