Morgan Stanley: Survey shows that 68% of investors see AI as the main driver of Tesla's stock price in the next year

According to a Morgan Stanley survey, 68% of investors see AI as the main driver of Tesla's stock price in the next year, and only 33% prefer electric vehicles. Morgan Stanley gave a target price of $310, 26% higher than the current price. Musk has mentioned many times before that Tesla is an artificial intelligence + robotics company, not just a car company. At present, as the decline of the electric vehicle business has become a consensus, investors have shifted more attention to Tesla's "AI narrative."

According to a Morgan Stanley survey, 68% of investors see AI as the main driver of Tesla's stock price in the next year, and only 33% prefer electric vehicles. Morgan Stanley gave a target price of $310, 26% higher than the current price. Musk has mentioned many times before that Tesla is an artificial intelligence + robotics company, not just a car company. At present, as the decline of the electric vehicle business has become a consensus, investors have shifted more attention to Tesla's "AI narrative."

Last weekend, Morgan Stanley analysts including Adam Jonas released a Tesla investor survey report, which showed that 68% of investors viewed AI as the main driver of Tesla's stock price in the next year, while only 33% preferred electric vehicles.

The report also noted that investors' views on Tesla's stock price performance over the next 12 months are almost "evenly distributed," highlighting the market's uncertainty about the company's prospects.

The survey was sent out on July 17 and collected 137 responses within 24 hours. Despite the limited sample size, it still reflects a significant shift in investor sentiment.

It is worth noting that Morgan Stanley also pointed out that it is time to consider Tesla’s “fourth chapter of its grand plan.”

Morgan Stanley released a report last month saying that it expects the fourth chapter to be supported by artificial intelligence, robotics, and hybrid computing technologies, connecting Tesla with Musk's other businesses (including SpaceX, Starlink, X and xAI), and investors should be prepared for it.

They believe that the significance of this new plan may change depending on the outcome of the US election. It was generally expected that after Trump returned to the White House, the US government would introduce a series of economic stimulus policies that would benefit US companies such as Tesla. However, after Biden withdrew from the election, the direction of the election began to change.

Despite this, Morgan Stanley remains optimistic about Tesla and has given a target price of $310, 26% higher than the current price. This valuation takes into account Tesla's automotive business, mobile travel and other business segments. Specifically:

• Core Automotive Business: $56/share
• Tesla Mobility: $61 per share
• Third-party supplier business: $40/share
• Energy business: $50/share
• Insurance business: $5/share
• Network Services: $97/share

The report also suggests that investors' valuation logic for Tesla is shifting from traditional electric car manufacturers to technology companies. But Morgan Stanley warned that this shift also brings new uncertainties, especially if the market fails to fully recognize the potential of Tesla's AI-related businesses.

Tesla will release its Q2 earnings report after the U.S. stock market closes on Tuesday, July 23. Wall Street expects Tesla's Q2 revenue to decline slightly year-on-year, and earnings per share to decline by about 30% year-on-year. Considering that Tesla's sales growth has slowed, the market currently expects its performance this year to be "not very ideal." By then, the market will focus on the latest news about the affordable version of the Model 2, the release time of Robotaxi, and the adoption rate of FSD technology.

From Wall Street News