icon
icon
icon
icon
$300 Off
$300 Off

News /

Articles /

Tesla, Inc. (TSLA): Morgan Stanley Reaffirms ‘Overweight’ Amid AI Growth and Political Tailwinds from Trump Administration

Wesley ParkWednesday, Nov 13, 2024 8:54 pm ET
3min read
Tesla, Inc. (TSLA) continues to make waves in the tech and automotive sectors, with Morgan Stanley analysts recently reaffirming their 'overweight' rating on the company. This bullish stance is driven by Tesla's strategic focus on artificial intelligence (AI) and the potential political tailwinds from the Trump administration. Let's delve into the reasons behind this positive outlook and explore the implications for investors.

Tesla's AI focus, led by the DoJo supercomputer, is a key driver of its long-term valuation. Morgan Stanley analysts, in a note led by star analyst Adam Jonas, reiterated their 'overweight' rating and $380 price target on Tesla stock, highlighting the potential of AI technologies to add over $500 million to the company's market value. The DoJo supercomputer, powered by AI, supports Tesla's autonomous driving efforts and its ability to license full-self driving technology to rivals. With data based on around 300 million miles of driving, Tesla's competitive advantage in AI and robotics is set to grow, positioning the company well for future profitability.

Tesla's strategic shift towards AI and robotics positions it uniquely in the competitive landscape of the EV industry. As Morgan Stanley analysts note, while the traditional EV industry nears commoditization, AI and robotics remain in their prime. Tesla's focus on these high-growth sectors aligns with the increasing importance of advanced technologies in transportation and beyond. By prioritizing AI infrastructure and participating in the "AI arms race," Tesla is well-positioned to capitalize on the growing demand for AI-driven robotics. Furthermore, the integration of advanced learning models allows Tesla's robots, such as robotaxis and humanoids, to evolve at a pace on par with generative AI and data center technology growth led by companies like Nvidia. This strategic shift sets Tesla apart from competitors and solidifies its position as a leader in the EV industry.

TSLA Market Cap


The Trump administration's potential support for Tesla and its AI initiatives could significantly boost the company's long-term growth prospects. Morgan Stanley analysts, in their note, highlighted the influence of AI technology on the carmaker's long-term earnings potential. Jonas' team argued that Tesla is valued at more than its current market price based on its diverse business dynamics, including licensing its Full-Self-Driving driver-assistance system, broader network and mobility services, battery, energy, and insurance divisions. Key to Tesla's additional value is its DoJo supercomputer, powered by AI technologies, which Jonas estimates could add more than $500 million to Tesla's market value. With Trump's close ties to Tesla CEO Elon Musk, the administration could provide further tailwinds for Tesla's AI initiatives, potentially accelerating the company's growth and solidifying its position as a leading AI-driven robotics player.

In conclusion, Tesla's AI focus and the potential political tailwinds from the Trump administration present compelling reasons for investors to consider the company. With its strategic shift towards AI and robotics, Tesla is positioning itself to capitalize on high-growth sectors and offset potential commoditization in the EV industry. As Morgan Stanley analysts have reaffirmed, Tesla's long-term valuation prospects remain strong, making it an attractive investment opportunity for those seeking stability, predictability, and consistent growth.
Comments

Add a public comment...
Post
User avatar and name identifying the post author
11/14

Crypto is risky as many would say but I think the actual risk in Crypto is not investing, buying the capitulation isn't a tough call, but it is a very tough call to figure out what to do aside from holding.
I remember when I just got into crypto back in 2019 but later in 2020 l ended up selling it because I was dumb and I didn't understand it. With the aid of Susan Demories, she’s available on 𝑓𝑎𝑐𝑒𝑏𝑜𝑜𝑘, her whatsApp +57 313 3500387I studied and learned about trading the Crypto Market, and now I know how it works.
Got back into crypto early in 2023 with 15k and I make at least 28k weekly.
All thanks to Susan Demories for the lovely mentorship. I highly recommend her On 𝑓𝑎𝑐𝑒𝑏𝑜𝑜k and whatsApp.

0
Reply
User avatar and name identifying the post author
Econ Watcher
11/14
$SWKS - Skyworks Solutions target reduced by Craig Hallum to $105 from $140. Buy rating - Mizuho downgrades to $105 from $127. Outperform rating - JPMorgan lowers to $100 from $120. Neutral rating - Susquehanna maintains at $100 from $110. Neutral rating - Morgan Stanley lowers to $87 from $117. Piper Sandler weighs in with a neutral rating of $85 from $95.
0
Reply
User avatar and name identifying the post author
DEBORAH SUE
11/14

I invested in a cryptocurrency index fund, and it's been generating passive income for me. The returns have been consistent, and I've been able to earn yields without having to actively trade. It's been a game-changer for my financial freedom. With the help of Cy Watson. Connect with @tradelivewithct on telegram i earn $25k weekly through his strategy  

0
Reply
User avatar and name identifying the post author
ROSE MARK
11/14

Ever since I found this platform on Facebook that is been managed by Mrs KARLA ELLISON, it’s been very helpful in knowing how to be a better steward of crypto. This was a great trader that help a lot of people, in trading analysis.
Since Donald J Trump has approved crypto sales for investment, I've finally a lot of profits in my investment. Bitcoin now is $93 heading to $100k

By the help of Mrs KARLA ELLISON. I've gotten my withdrawal successfully

0
Reply
User avatar and name identifying the post author
DutchAC
11/14
Just a reminder, $TSLA is a trillion-dollar EV company. 🤣
0
Reply
User avatar and name identifying the post author
DEBORAH SUE
11/14
@DutchAC

I invested in a cryptocurrency index fund, and it's been generating passive income for me. The returns have been consistent, and I've been able to earn yields without having to actively trade. It's been a game-changer for my financial freedom. With the help of Cy Watson. Connect with @tradelivewithct on telegram i earn $10k weekly through his strategy  

0
Reply
Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.
You Can Understand News Better with AI.
Whats the News impact on stock market?
Its impact is
fork
logo
AInvest
Aime Coplilot
Invest Smarter With AI Power.
Open App