Morgan Stanley Sees Tesla With Significant Upside Potential

Tesla’s Recent Stock Performance Stands Out

Tesla (TSLA) shares have climbed steadily in recent sessions, attracting considerable market attention. This week, Morgan Stanley analyst Adam Jonas noted that although TSLA has posted impressive gains, institutional investors still hold relatively modest positions. This leaves room for greater institutional ownership going forward. Jonas set a $410 price target for Tesla.

Limited Institutional Ownership

At the recent Laguna Conference, Jonas observed that only a small number of attending investors held significant stakes in Tesla. His analysis suggests that this low level of institutional holdings could fuel further upside if more institutions choose to increase their exposure.

Musk’s Magnetism and Talent Strategy

Morgan Stanley highlighted Elon Musk’s pivotal role, emphasizing his ability to attract leading AI and robotics professionals. Top-tier talent is critical to advancing Tesla’s long-term ambitions under Master Plan 4. Jonas regards Musk not only as the company’s CEO but also as the driving force behind technological breakthroughs, drawing world-class talent to Tesla.

AI and Product Innovation Drive Long-Term Opportunity

Morgan Stanley emphasized Tesla’s strategic positioning in physical AI, which gives the company enduring potential in the U.S. tech sector. On the product front, ongoing improvements to Full Self-Driving (FSD) software and a streamlined purchasing process have enhanced user experience. Jonas also spotlighted the integration of X platform’s AI assistant Grok into Tesla vehicles, boosting interactivity and engagement—a standout product feature.

Conclusion

Morgan Stanley sees significant upside for Tesla: low institutional ownership, Musk’s talent attraction, and continued advancements in AI and product innovation all reinforce the company’s long-term value proposition. For investors, Tesla represents not just a short-term trading opportunity but a central participant in long-term growth stories.