Morgan Stanley gives Tesla stock Buy Rating & TP $310 weighs on TMP4

$Tesla(TSLA.US)$ $BYD COMPANY(01211.HK)$ $NIO Inc(NIO.US)$ $XPeng(XPEV.US)$ The article reported that Morgan Stanley analyst rates the stock an Overweight (i.e., Buy), with a Street-high price target of $310. If achieved, his target could offer a potential return of 74% from current levels. Here are the 2 reasons:

1) Jonas expects Musk will stay in his CEO role and will be present on the Q2 earnings call, with the robotaxi event in Austin on August 8th offering further prospects.
2) The analyst also lays out several key items the company must address both in the here and now, and looking ahead. The near-term priority is to reset the cost and capacity bar in the auto business, given shareholder votes alone won’t drive consumer adoption of EVs. In the medium term, Tesla needs to introduce new products in both its auto biz and beyond, leveraging its strengths in AI, robotics, computing, and renewable energy. Long-term, Tesla must unify strategies across Elon Musk’s ventures, including xAI, X, and Tesla, and start planning for “eventual succession.”

My Take: According to Investor.com, Morgan Stanley also weighs on Tesla's growing ambitions in Artificial Intelligence (AI), robotics, and hybrid computing. Analysts expect MP4 (Master Plan 4) to showcase a more prominent connection between Tesla and EM's other ventures like SpaceX and X, forming a broader technology ecosystem. Tesla see a combination of a weakening EV market and Tesla's expansion into new areas like humanoid robotics driving this shift.