Tesla Stock Is Still A "Top Pick" Says Morgan Stanley

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Posted on EVANNEX on December 21, 2022, by Peter McGuthrie

Tesla’s stock is way down on the year, but some think the automaker could have a sizable upside in the future. Many analysts view Tesla’s low stock price as a chance to see serious value growth, including investment firm Morgan Stanley.

Above: A Tesla store in Hannover, Germany. Photo: Maxim / Unsplash

Morgan Stanley called Tesla one of its Top Picks for 2023 earlier this month, highlighting increasing competition and the company’s dominant position amidst a bear market, as detailed in a report from Teslarati. The firm also maintained a price target of $330, while some other analysts have dropped their own targets on Tesla’s stock.

“While we see 2023 as a challenging year for the EV market categorically, we believe Tesla’s gap to competition can widen,” wrote Morgan Stanley in a note to clients.

The news opposes recent moves by fellow investing firm Goldman Sachs, which recently cut Tesla’s stock price target from $305 to $235 on account of Elon Musk’s Twitter affairs. Still, many consider Tesla’s financial details sound, from its high earnings and profitability to its low debt compared to the competition.

However, some analysts predict that tech stocks could still fall, causing a level of caution among investors. Another factor affecting stocks across the board is the precarious nature of the current bear market, as the U.S. Federal Reserve has pushed interest rates upward to combat inflation.

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