After Morgan Stanley, CEO Elon Musk Himself Identifies Tesla's Long-Term Value Drivers

Tesla Inc TSLA CEO Elon Musk on Monday said that the long-term value of the company will be driven by AI and robots. The CEO’s comment comes on the heels of a Morgan Stanley report which pinned Tesla’s long-term growth on its custom supercomputer Dojo.

What Happened: “Almost all of Tesla's value long-term will be from AI & robots, both vehicle & humanoid,” Musk wrote on X, formerly Twitter. He was responding to a Tesla enthusiast who commended Morgan Stanley analysts for understanding Tesla as an AI company.

The enthusiast opined that Tesla is currently the most undervalued stock on the Nasdaq and the price target of $400, though the highest now among Wall Street analysts, fails to reflect the value of the company with “highest opportunity and probability in the market to implement AI for vehicles as well as Robots.”

See Also: Everything You Need to Know About Tesla Stock

Why It Matters: Morgan Stanley analyst Adam Jonas upgraded his rating on Tesla from ‘equal-weight' to ‘overweight,' boosting the price target by 60% to $400.

Jonas’ optimism centers around the belief that Dojo has the potential to add a remarkable $500 billion to Tesla's enterprise value, primarily driven by a faster adoption rate in mobility and network services.

"The more we looked at Dojo, the more we realized the potential for underappreciated value in the stock. Like many other large-cap tech stocks on your screen, we believe Tesla can reasonably test its all-time highs of $400 over the next 12 months," he said.

Tesla has now taken the lead as Jonas's top pick, surpassing Ferrari NV.

Price Action: Tesla shares closed 10.1% higher on Monday at $273.58, according to data from Benzinga Pro.

Photo Courtesy: Frederic Legrand – COMEO On Shutterstock.com

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