Eric McConnell
4 min read
In This Article:
To say that early 2025 has been difficult for Tesla (NASDAQ: TSLA) stockholders would be an understatement. Company profits and sales figures are way down, and many attribute this to the growing unpopularity of CEO Elon Musk. Despite that, Morgan Stanley analysts are bullish about the company's long-term outlook. Keep reading to find out why.
Tesla's public fall from grace has been as sudden as it was unexpected. As recently as a year ago, the business world hailed Musk as everything from an innovator to a genius. Tesla cars were almost unchallenged as America's favorite EV, and the future looked even brighter. The bottom began falling out shortly after Musk took on a leadership role at DOGE.
Don't Miss:
-
Hasbro, MGM, and Skechers trust this AI marketing firm — Invest before it's too late.
-
Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – with $1,000 you can invest at just $0.30/share!
Then there was his open embrace of Germany's far-right AFD political party. It all combined to create the perfect storm of unpopularity. Tesla sales plummeted in the U.S. and Europe despite rising demand for EVs. The stock tanked, and things got so bad that there were rumors that Tesla's board was quietly searching for a new CEO. That seems like a rather odd backstory for a stock that Morgan Stanley Analyst Adam Jonas rated as a "top pick."
To be certain, Jonas is not predicting that disgruntled Tesla customers will come rushing back anytime soon. His prediction is based on other factors, most notably the belief that Tesla is more than just a car company.
Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share.
According to Tipranks, Jonas is basing his analysis on an acronym that he calls D.R.E.A.M.S. The breakdown is:
-
Data: Even with plummeting sales numbers, Tesla has over 7 million vehicles on the road and expects that there will be 40 million by 2040. This creates an avalanche of driver and consumer data for Tesla to manipulate and market
-
Robotics: Tesla produces cars using its own robots, and this technology will have value beyond just EV production
-
Energy: Tesla is also a leader in producing electrical batteries that can power operations both large and small
-
AI: Tesla has an advance AI department that's helping to develop its self-driving cars and will have other valuable uses in the future
-
Manufacturing: Jonas says Tesla is "the "most vertically integrated, US-local sourced auto company in the world."
-
Space: Jonas believes Tesla's SpaceX division is the "data transport layer – the connective tissue of the AI ecosystem."
