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Highlights
- Tesla's (TSLA) share price could reach $800, predicts Morgan Stanley.
- Autonomous mobility and AI advancements drive investor interest.
- Tesla Mobility and Network Services may redefine recurring revenue models.
Tesla (NASDAQ:TSLA) has once again captured attention as Morgan Stanley forecasts a potential rise in its share price to $800. This optimistic outlook stems from the company's advancements in artificial intelligence (AI) and leadership in autonomous mobility, positioning it as a dominant force in these transformative industries.
In a report highlighting Tesla’s innovations, Morgan Stanley set its bull-case price target at $800, nearly double its recent closing price of $403.31. Even with Tesla’s shares declining 18% from December's peak, the stock has surged over 80% in the past three months. This growth underscores the market’s growing acknowledgment of Tesla’s strategic advantages in areas like robotics, energy storage, and data integration.
Morgan Stanley identified Tesla's advancements in embodied AI—where AI integrates into physical systems like robots—as a crucial factor for future growth. Tesla’s autonomous rideshare division, Tesla Mobility, plays a central role in this vision. The division is anticipated to expand its fleet to 7.5 million vehicles by 2040, contributing substantial revenue per mile and delivering high earnings margins. Under an even more aggressive outlook, the fleet could reach 12 million vehicles by 2040, significantly amplifying profitability.
Notably, Tesla’s Network Services division—encompassing offerings like software subscriptions, supercharging, and Full Self-Driving features—holds immense potential for long-term revenue growth. By 2030, the segment could generate one-third of the company's earnings, expanding to nearly 60% by 2040. Morgan Stanley valued this segment alone at $168 per share, reflecting its increasing relevance in the company’s portfolio.
The report also touched on Tesla's plans to launch its first city-based fleet of unsupervised autonomous vehicles as early as next year. The broader adoption of this technology could unfold by 2030, cementing Tesla's role as a pioneer in autonomous mobility.
Tesla’s innovative approach combines cutting-edge technology with a vision for turning vehicle owners into subscribers, driving recurring revenue streams. Billionaire founder Elon Musk continues to influence both industry standards and political landscapes, further propelling the company's growth narrative.
While uncertainties about electric vehicle sales in the US and Europe linger, Tesla’s expertise in AI and autonomous technology is poised to secure its leading position in the evolving global automotive market.
