Tesla (TSLA) PT Raised to $500 at Morgan Stanley; Raises Bull Case to $1200

Morgan Stanley analyst Adam Jonas raised the price target on Tesla (NASDAQ: TSLA) to $500.00 (from $360.00) while maintaining an Underweight rating. The firm also raised their bull case to $1200 (from $650).

"We believe investors should expect a very challenging 1Q, with our bull case moving to expansionary mode on battery capacity," Jonas comented. "We raise our target to $500 from $360 & recast our bull case to $1,200, which is based on aggressive unit volume outcomes that may push the limits of both demand and capacity to supply."

On the bull case, Jonas commented: "Our new bull case reflects 4 million units of auto volume by 2030 with a 12% operating margin. This compares with our base case forecast of 2.2 million units and a 10% OP margin by 2030. Additionally, we have included $168/share of value for the company's potential to supply EV powertrains (battery + e-motors and supporting ‘skateboard’ architecture) to other OEMs on a 3rd party supply basis. The combined 6 million units of EVs we assume in our Tesla bull case accounts for roughly 30% of the global EV market (on Morgan Stanley forecasts), which we believe is an aggressive assumption. Our bull case also includes just over $100/share of mobility services and energy/SCTY value. The shares offer roughly 50% potential upside to our bull case."

The Bear Case was raised to $220 from $115.

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