Tesla may be a global leader in electric vehicles, manufacturing, real world AI and renewable energy and therefore warrant a premium valuation, but for Morgan Stanley there’s a fair price for everything and this is now all fully discounted.
The bank’s new analyst on the stock, Andrew Percoco, has downgraded his recommendation on Tesla TSLA from overweight to equal-weight, while upping the price target to $425 from $410 per share.
Tesla shares are currently trading at $454, roughly 7% above the revised Morgan Stanley target. In the last three months, Tesla has outperformed the wider market and rallied by roughly a third but in 2025 so far, has advanced just 12%.
