Morgan Stanley analyst and Tesla Inc TSLA bull Adam Jonas deems the EV maker to be both an auto company and an AI company. This, the analyst says, might spur the company forward next year as the company faces another ‘challenging’ year for its auto business.
Tesla Thesis: Jonas reiterated his overweight position on Tesla with a $380 price target in the hopes of the company’s other segments aiding it over the next year. A larger slice of Jonas’s price target is derived from Tesla’s potential in-network services, mobility, third-party battery/ FSD licensing, energy, and insurance.
Among Jonas’ assumptions driving Telsa next year are Optimus, Dojo, artificial intelligence, and EV infrastructure.
Jonas is awaiting Tesla’s next AI day in the first half of 2024 and sees the company introducing new technologies at the event. Optimus, for one, has a huge potential for Tesla as it addresses the $30 trillion global labor market, Jonas said in a note on Tuesday.
Jonas also sees Tesla’s Dojo supercomputer spurring its growth like Amazon Web Services (AWS) aided the online retailer. Dojo, Jonas says, can open new markets for Tesla beyond selling vehicles. The analyst further sees a halo effect from Tesla CEO Elon Musk‘s rocket manufacturing company SpaceX advancing its Starlink satellite internet service.
Jonas sees Tesla’s earnings per share rise at a 27% CAGR through FY30, achieving $15/share by mid FY29. By the end of 2025, Tesla’s EPS should achieve $5/share, the analyst said.
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Price Action: Tesla shares closed 1.6% higher on Tuesday at $256.61, according to data from Benzinga Pro.
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