Tesla Stock Rises Following Bullish Analyst Projections and Improved FSD Performance

Morgan Stanley raises Tesla's price target to $430, citing advancements in autonomous driving and embodied AI as key growth drivers.

Tesla shares climbed over 2% in pre-market trading after Morgan Stanley raised its price target to $430, with a bullish scenario projecting a potential $800 valuation.
The updated price target reflects optimism around Tesla's autonomous rideshare and robotaxi services, which are expected to contribute significantly to future revenue.
Tesla's Full Self-Driving (FSD) version 13.2 demonstrated a 750% improvement in efficacy, achieving 724 miles per disengagement on highways, according to company updates.
Morgan Stanley highlighted Tesla's competitive edge in 'embodied AI,' leveraging data collection, robotics, energy storage, and synergies across Elon Musk's ventures like SpaceX and xAI.
Despite record fourth-quarter vehicle deliveries in 2024, Tesla's annual sales fell slightly short of 2023 levels, driven by increased competition and demand challenges in the U.S. and Europe.