Here's Why Morgan Stanley Bumped Up Tesla's Price Target By 33%

  • Morgan Stanley analyst Adam Jonas raised the price target on Tesla Inc TSLA to $1,200 from $900, implying a 32% upside, and reiterated an Overweight rating on the shares following better than expected Q3 results.
  • Tesla over the next 12 months can demonstrate its manufacturing leadership, a "step change in costs/complexity and higher growth in the vehicle user base," Jonas notes. 
  • The $1,200 target implies roughly half the company's growth target, a "constrained" China and virtually no autonomy, says the analyst. 
  • Jonas notes that the target raise is driven predominantly by higher volume assumptions. 
  • His revised volume forecast of 8.1M units by 2030 implies an annual growth rate of 28%, slightly more than half the 50% growth rate targeted by Tesla over the long term.
  • Jonas said that Tesla Q3 sales surged by approximately 70% according to his calculations, even though global automobile production fell by about 20%. 
  • Beyond vehicle sales, Tesla's software business and tech in areas like insurance and battery supply would allow it to become a "champion," added Jonas.
  • Price Action: TSLA shares traded higher by 2.62% at $933.50 premarket on the last check Monday.

Posted In: BriefsNewsPrice TargetReiterationAnalyst RatingsMoversTechTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.