Intel stock spikes after report of possible US government stake
On Thursday, Morgan Stanley (NYSE:MS) reaffirmed its confidence in Tesla stock (NASDAQ:TSLA), maintaining an Overweight rating with a steady price target of $430.00. The firm’s analysis suggests Tesla is evolving beyond its core automotive business into a broader technology company with significant involvement in artificial intelligence (AI) and robotics. With a market capitalization of $1.25 trillion and current trading price of $389.10, InvestingPro analysis indicates Tesla is trading at premium multiples, with a P/E ratio of 97x and an EV/EBITDA of 93x.
The research firm points out that Tesla’s fourth-quarter results reflect a company at the cusp of transitioning from a pure automotive entity into a diversified conglomerate with interests in AI and robotics. This transition is expected to open up Tesla’s total addressable market (TAM) to include a variety of new sectors not yet factored into the financial models of many investors and analysts. The company’s strong financial position is evident in its $97.15 billion trailing twelve-month revenue and overall GOOD financial health score according to InvestingPro metrics.
Morgan Stanley anticipates that as AI extends its reach from digital spaces into the physical realm, Tesla will likely experience growth in several emerging industries related to embodied AI. According to the firm, Tesla has already secured a substantial competitive edge in these areas. While Tesla shows strong potential, InvestingPro data reveals significant stock price volatility with a beta of 2.3, though the company maintains robust financials with more cash than debt on its balance sheet.
The firm’s analysts believe that the year 2025 will be pivotal for the company, as investors will increasingly recognize and place value on Tesla’s expanding presence in these innovative sectors. Despite potential volatility and the non-linear progression of these industries, the firm remains optimistic about Tesla’s prospects.
The maintained Overweight rating and price target reflect Morgan Stanley’s view that Tesla’s stock continues to be a favorable investment, especially considering the company’s strategic advancements into AI and robotics, which are expected to contribute to its future growth.
In other recent news, Tesla’s annual revenue for 2024 was reported at $97.15 billion, despite a gross margin of 18.23% falling below analyst expectations. Truist Securities recently adjusted its price target for Tesla to $373, maintaining a hold rating. Meanwhile, Mizuho (NYSE:MFG) has kept an outperform rating with a $515 price target, and RBC Capital has reiterated an outperform rating with a $440 target. TD Cowen and Stifel both maintain a hold rating on Tesla, with price targets of $180 and $492 respectively. These recent developments include analyst insights from firms such as Mizuho, RBC Capital, TD Cowen, and Stifel.
Tesla’s advancements in Full Self-Driving (FSD) technology and the anticipated deployment of unsupervised vehicles in Austin were highlighted by several firms. Additionally, the company’s expansion into robotics, particularly with the Optimus project, is viewed as a potential growth catalyst. However, Tesla continues to face challenges, including a complaint from the Union of Swedish Electricians over alleged unauthorized electrical work at its charging stations, and challenging the European Union’s tariffs on China-made electric vehicles. These are the recent developments in Tesla’s operations and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.