Tesla (NASDAQ: TSLA) is Morgan Stanley’s “Top Pick” and got a brand new price target from the firm amidst the stock’s meteoric climb up Wall Street.
Shares have done nothing but climb since President-elect Donald Trump was chosen by the American people in early November, as they have climbed over 50 percent since election Tuesday.
However, there are more tailwinds for the EV maker moving forward, specifically in non-EV ventures, Morgan Stanley writes in a note to investors on Tuesday, where it pushed its price target from $310 to $400.
Morgan Stanley lead Adam Jonas notes that CEO Elon Musk’s venture into politics has changed how shareholders look at the company:
“Elon Musk’s entry into the political sphere has expanded investor thinking around Tesla’s fundamental outlook.”
However, there are more things that the business has for investors, specifically its prowess in autonomous driving and artificial intelligence.
With Trump and Musk holding a major political alliance, it seems Tesla has a true chance to hold a major position in the landscape of the entire sector.
Jonas continues:
“Policy changes present near-term headwinds to US EV sales but must not cede autonomous leadership to geopolitical rivals. Prefer dealers to suppliers and reiterate TSLA as Top Pick. With 2025 ushering in a new administration, we refresh our 2025 auto forecasts, review key themes, and provide a scenario analysis to help investors frame the most relevant industry debates, including EV policies, onshoring/tariffs, China export expansion, and the nascent emergence of autonomous vehicles.”
Jonas has been one of the most bullish analysts on Wall Street on Tesla, and the price target boost is incredibly valid considering the stock’s boost on the market for the past month and a half.
Tesla is currently trading at $406.63 at 2:41 p.m. on the East Coast.
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