Tesla (TSLA – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Adam Jonas from Morgan Stanley maintained a Buy rating on the stock and has a $410.00 price target.
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Adam Jonas has given his Buy rating due to a combination of factors that highlight Tesla’s potential beyond its core automotive business. He emphasizes that while many investors focus solely on Tesla’s car sales, the company’s future value lies in its ability to leverage its installed base of vehicles for additional revenue streams. By the mid-2030s, Tesla’s installed base is expected to reach 50 million units, and each $100 per month of revenue from this base could significantly increase the stock’s value.
Furthermore, Jonas points out the rapid growth and high margins of Tesla’s energy storage business, which he values at $67 per share. He also notes the potential impact of Tesla’s humanoid robots, which could transform the labor market and add substantial value to the company. Despite the challenges of valuing Tesla’s diverse portfolio of emerging businesses, Jonas sees these factors as key drivers for the stock’s long-term growth, justifying his Buy rating.
In another report released today, Cantor Fitzgerald also maintained a Buy rating on the stock with a $355.00 price target.