5 big analyst AI moves: Apple lifted to Buy, AI chip bets reassessed
Investing.com - Morgan Stanley has shared insights on Tesla’s (NASDAQ:TSLA) Full Self-Driving (FSD) technology following an analyst’s extensive road trip experience, highlighting the system’s reliability and convenience. The electric vehicle giant, currently valued at $1.4 trillion with a P/E ratio of 251, continues to demonstrate strong market performance with a 72% return over the past year. According to InvestingPro analysis, Tesla’s stock is currently trading above its Fair Value.
The analyst completed a 1,400-mile round trip between New York and Michigan, reporting that Tesla’s FSD handled over 99% of the driving on the journey. The experience was described as "a real game changer" that significantly reduced driving stress, allowing the driver to focus on other activities while maintaining proper supervision.
During the journey, the FSD system reportedly made "no mistakes or close calls," performing particularly well on highways. The analyst noted the technology "changes how I think about long distance road travel" and stated, "I cannot imagine buying another EV without FSD or an equivalent advanced ADAS feature."
The report also detailed positive experiences with Tesla’s Supercharger network, describing it as "extremely convenient" with well-placed stations that required only 15-20 minutes to charge from 10% to 80%. Despite Tesla opening its charging network to other manufacturers, the analyst observed no non-Tesla vehicles at any of the ten charging stations visited.
The analyst concluded that FSD technology will "eventually become embedded standard equipment on all Teslas (and all cars eventually)," comparing it to the evolution of airbags from premium features to standard safety equipment. With annual revenue of $92.7 billion and strong cash flows, Tesla appears well-positioned to lead this transformation. For deeper insights into Tesla’s financial health and growth prospects, including 20+ additional ProTips and comprehensive valuation analysis, visit InvestingPro.
In other recent news, Tesla’s delivery forecast has been notably updated by Barclays, which now estimates the company will deliver approximately 465,000 vehicles in the third quarter. This forecast is significantly higher than the consensus estimate of around 430,000 units, marking a sequential increase of about 21% from the previous quarter. Meanwhile, Cantor Fitzgerald has reiterated its Overweight rating on Tesla, maintaining a price target of $355. This follows their observations on autonomous vehicle deployment strategies in the U.S. and Tesla’s ambitious new 10-year compensation plan for CEO Elon Musk. The plan could potentially be worth up to $1 trillion, contingent on achieving specific performance goals tied to market capitalization milestones.
Additionally, TD Cowen has reiterated its Buy rating on Tesla with a price target of $374, citing insights gained from a sell-side call regarding the CEO compensation proposal and product goals. Baird has maintained its Neutral rating with a $320 price target, aligning with the unveiling of Musk’s compensation package, which involves ambitious business targets. These recent developments provide a comprehensive view of Tesla’s strategic directions and analyst perspectives.
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