$Tesla Motors(TSLA)$ stock price surged over 10% on Monday under the influence of Morgan Stanley's bullish AI report.
$Morgan Stanley(MS)$, in a research report, designated Tesla as its top pick and raised its target price from $250 to $400, implying over a 45% upside from current price.
We believe that Dojo can add up to $500 billion to Tesla's enterprise value, expressed through a faster adoption rate in Mobility (robotaxi) and Network Services (SaaS).
To learn more about Morgan Stanley’s report on Tesla, you can click to read Tesla Rides AI Wave to $400? MS Analysts Weigh on AI Mojo Dojo
However, GLJ Research founder and CEO Gordon Johnson questioned Morgan Stanley's optimistic analysis in an interview.
Gordon Johnson challenges supercomputing and close connection between $Morgan Stanley(MS)$ and $Tesla Motors(TSLA)$
Where's the tech? 98% of Tesla's gross profit in the second quarter came from car sales.
It's worth noting that Johnson's target price for Tesla is only $24.
Johnson directly challenged Jonas's unrealistic predictions based on Tesla's supercomputing capabilities and suggested that the close relationship between the investment bank and Tesla and Musk might be influencing the upward revision.
1) Unrealistic predictions for supercomputing capabilities
Although the supercomputer began production last month, Johnson highlighted that the rankings of Tesla's driver assistance technology by Consumer Reports and Guidehouse Insights are currently quite low compared to competitors.
2) Morgan Stanley has close connection with Tesla and Elon Musk
Johnson suggested that Morgan Stanley holds nearly 28 million shares of Tesla stock. This raises questions about the fairness of the analysis.
What's your target price for Tesla?
Will the bullish report drive Tesla price up to $300 this week?
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Comments
FC has been flying under the wall street radar. Bob Whitman doing great job with subscription learning, and K-12 learning. FC has adapted to business in the pandemic. Government spending billions on education.
Best short in the markets heading to 20 or lower. Shorted yesterday at 45 x 2000 short shares. Enjoy the haircut longs . You deserve the losses.
Monster company..SaaS model..killing it..no street coverage...fine by me..my biggest holding
Management mentioned at the end of the call that there will be an AI announcement coming.
FC is down 15% this morning. What's the bad news, I haven't heard.