Tesla (TSLA) stock was up 5.6% yesterday and gained about 2% in the pre-market trading session on Tuesday. The upside came after Morgan Stanley (MS) analyst Adam Jonas named TSLA as the “top pick” in the U.S. automotive sector, replacing Ford (F). Further, Jonas reiterated a Buy rating on the stock with a price target of $310, which implies a 33.6% upside.
Interestingly, Jonas is a Top-rated analyst with a success rate of 59% on Tesla. Investors should note that TipRanks ranks the Top analysts according to industry, timeline, and benchmarks. The ranking reflects an analyst’s ability to deliver higher returns through recommendations.
Analyst’s Opinion on TSLA Stock
Jonas is optimistic about Tesla’s strategic cost-cutting measures and its growing presence in areas like energy storage, AI, and robotics.
Interestingly, the analyst sees the energy business as a potential future value driver. He believes that Tesla’s energy business may be worth more than its auto business, as investors prioritize companies tackling climate change. Further, Jonas emphasized Tesla’s strong position in zero-emission vehicle (ZEV) credit revenue, predicting that the company will capture nearly half of the market.
Is Tesla a Buy or Sell?
On TipRanks, Tesla has a Hold consensus rating based on 11 Buy, 12 Hold, and seven Sell ratings. After a rally of 26.6% in the past three months, the analysts’ average price target on Tesla stock of $213.92 implies a 7.8% downside potential from current levels.
