Morgan Stanley reiterates Overweight rating on Tesla with a $310 price target

$Tesla(TSLA.US)$ $BYD COMPANY(01211.HK)$ $NIO Inc(NIO.US)$ $XPeng(XPEV.US)$ Morgan Stanley analyst Adam Jonas released a note about Tesla stock on 17 April 2024. Sawyer Merritt summarized 4 points here:

1) Amidst bearish institutional investor sentiment, we reiterate our OW rating on Tesla with a $310 price target.

2) Our thesis on Tesla is that it is both an auto stock + an energy, AI/robotics company. In fact, our valuation of the core auto business ($62/share) represents just 20% of our $310 price target.

3) Negative developments in the global EV market very much matter to Tesla and should reasonably have a negative near-term impact on the price of the stock.

4) At the same time, however, we believe investors should not ignore the continued developments of Tesla’s other plays, many of which are auto-related (i.e. the recurring revenue opportunity from the Tesla fleet – embedded in our Tesla Network Services valuation) and other areas that we do not include within our $310 target but that the market may include (i.e. Optimus) which we expect to learn much more about during the 2024 Tesla AI day (date TBD)."

My take: Adam Jonas ratings on Tesla is for the longer term. Like I said previously most analysts give ratings based on Q1 delivery and the coming earnings (which is expected and nothing new) and a few simply ignored Tesla is a Tech company - Auto/Energy/AI/Robotics. Those who are bias against Tesla will not tell you other EV stocks (BYD, Rivian, Nio, Xpeng etc) are also under share price downtrend pressure. In particular $NIO-SW(09866.HK)$ was 60% down YTD and hit 52-week low AND historical low 29.25 HKD yesterday (16 April 2024).