Morgan Stanley lowers Tesla price target, retains Buy rating

Morgan Stanley analyst Adam Jonas has adjusted his price target for Tesla stock but maintains a positive outlook. He predicts that Tesla’s stock could rebound by 93% over the next year, despite some recent challenges. Tesla's stock price has dropped significantly, falling 50% from its peak in December 2024. Currently, it is priced at around $223.59. Jonas has set a new price target of $430, which suggests a strong potential for recovery. Jonas describes the current situation as a good buying opportunity for investors. He emphasizes that Tesla remains a strong investment, driven by advancements in robotics and artificial intelligence, despite short-term sales declines and negative brand perception. While there are challenges ahead, including increased competition and an aging product lineup, Jonas believes Tesla's long-term prospects remain bright. He expects key developments, such as the rollout of Tesla's Full Self-Driving technology for rideshare services later this year, could help boost the stock. Billionaire investor Ron Baron also supports Tesla, indicating confidence in the company's future. Overall, Jonas is optimistic that Tesla will overcome its near-term difficulties and emerge stronger.