Wall Street Analyst Foresees a 75% Upside in This EV Stock

In the current climate where electric vehicle (EV) stocks, including market behemoth Tesla (TSLA), have seen their market value dip, some experts believe these drops present an opportunity for growth. Among the voices predicting a rebound is a Wall Street analyst who envisions Tesla stock soaring by almost 75%.

One Analyst's Optimistic Outlook on Tesla

Adam Jonas, a well-regarded analyst from Morgan Stanley, remains bullish on Tesla. Upholding his overweight rating, Jonas persists with a hopeful $345 price target. This February, he and his team expressed belief that the market is underestimating Tesla's capabilities, especially given its potential within the artificial intelligence (AI) and robotics spheres.

Jonas's team is particularly excited about Tesla's advances in autonomous technologies and their much-anticipated Optimus project — a bipedal humanoid robot designed for monotonous and hazardous tasks. They contend that Tesla should be seen as not only an automotive company but also a key player in the AI and energy sectors. With a valuation of Tesla's core auto business at $75 per share, this represents a mere 22% of their $345 price target, hinting at optimism in its broader tech endeavors.

The analysts concede that Tesla, like others in the EV market, is experiencing current headwinds, but believe this will only have a short-term impact on share value.

Challenges in the EV Landscape

Despite their bullish stance, Jonas and his colleagues have slightly reduced their price targets from $380 to $345, acknowledging a glut in the EV market. They suggest this oversupply issue could be a factor necessitating price reductions by manufacturers, including Tesla, in attempts to sustain sales volume. Furthermore, concerns have been raised about Tesla's Autopilot feature and its safety record, implying that the technology might require further refinement.

While Tesla's path ahead may have its share of obstacles, the potential for advancement in AI and robotics has kept some analysts firm on its promise of substantial growth, reflecting a long-term confidence in the company's innovative trajectory.

Tesla, EV, Stocks