Morgan Stanley supports Tesla, Inc. (TSLA.US): Musk has a lot of cards in his hands! "Tesla drama" does not hinder the bull market narrative.

The Wall Street financial giant Morgan Stanley, known as a "super bull" on Tesla, Inc., recently issued a very bullish research report on Tesla, Inc. The analyst team from Morgan Stanley stated in a recent report that despite the highly publicized rift between CEO Elon Musk and US President Donald Trump, which may have short-term negative effects on Tesla, Inc.'s stock price, they continue to maintain an "Overweight" rating on Tesla, Inc. (TSLA.US) stock and reiterated their long-standing target price of $410. Morgan Stanley's $410 target price for Tesla, Inc. suggests a nearly 40% increase in the stock price over the next 12 months from the closing price of last Friday, according to the analyst team. Morgan Stanley mentioned that Musk has a strong hand, with Tesla, Inc. alone involved in many cutting-edge technology areas such as AI, Tesla, Inc.'s AI-based autonomous driving network, humanoid Siasun Robot & Automation, AI + manufacturing, defense + drones, battery energy and storage, which are core areas of the "re-shoring manufacturing to America" policy that the American people and the government will rely on for the long term and to create sustainable employment opportunities, and there are few alternatives comparable to Tesla, Inc. in these areas for a long time. Due to the escalating dispute last Thursday, Tesla, Inc. dropped nearly 15% last week, with Musk and Trump engaging in personal attacks on social media. This "special horse" dispute led to a single-day plunge of over 14% in Tesla, Inc.'s stock price last Thursday, marking the largest single-day market value loss in history, and also weighed down on the S&P 500 index and the Nasdaq on Thursday. Tesla, Inc.'s stock price rebounded slightly on Friday, rising nearly 4%. Year-to-date in 2025, Tesla, Inc. has accumulated a decline of over 25%. However, it is believed that both Musk and Trump significantly toned down their verbal attacks over the weekend, although some media reports suggest that Trump has no plans to engage in direct conversations with Musk; Musk had already stepped down from his White House position at the end of May. The core of the disagreement between the two seems to be the "big and beautiful" tax and spending bill led by the Trump administration, which Musk had strongly criticized multiple times before. One of the latest signs that the fierce dispute between Trump and Musk might ease is that Bill Ackman, a legendary hedge fund figure and major Republican donor, stated on social media that everyone should peacefully coexist for the benefit of the country, to which Musk replied to Ackman, saying "you're right." Therefore, Musk's response to Ackman is seen as a signal that both sides are starting to compromise. Another indication of both sides compromising is Trump's statement that Los Angeles has been invaded and occupied by illegal immigrants and criminals, and he has appointed several White House officials to handle the issue, suggesting that the unrest will end, and Los Angeles will return to safety. Musk shared this statement with two American flags, showing his apparent support for Trump. "Super bull" Morgan Stanley backs long-term fundamental expectations for Tesla, Inc. Morgan Stanley, known as a "super bull" on Tesla, Inc., believes that the gradual elimination of tax breaks for electric vehicles in the "big and beautiful" bill led by the Trump administration is not significant for Tesla, Inc.'s stock price and fundamental outlook in the long term. The analyst team at the firm pointed out that Tesla, Inc.'s stock price surged over 50% during the rebound period from April to May, possibly due to Musk's commitment to stepping away from US government affairs, dedicating more time to Tesla, Inc., and investors betting on Tesla, Inc. becoming the absolute leader in AI, autonomous driving, AI+ manufacturing, and humanoid Siasun Robot & Automation areas in the future. The Morgan Stanley analyst team also suggested that increased political attention might "temporarily alienate" customers and enterprise clients with differing political views, potentially bringing more demand pressure to Tesla, Inc.'s products. For example, due to the dissatisfaction of US Democratic consumers and European consumers with Musk's political actions, as well as increased competition in the Chinese market and aging Model series models, Tesla, Inc.'s sales have declined significantly in recent quarters on a global scale. But the Morgan Stanley analyst team remains very optimistic about the long-term outlook for Tesla, Inc. "Although bearish sentiment is high in the short term, we do not believe that any significant changes will occur in the long-term factors driving Tesla, Inc.'s stock price to $410, or even $800 bull market levels." "In our view, under Musk's leadership, Tesla, Inc. continues to hold significant growth potential, a huge employment space, and a winning hand that the American people and the US government cannot escape from for a long time, largely unrelated to US politics," wrote the analysts at Morgan Stanley in their report. The Morgan Stanley analyst team particularly emphasized that Musk himself has always focused on Tesla, Inc.'s leadership in artificial intelligence, Tesla, Inc.'s AI-based FSD, autonomous driving ride-sharing network, humanoid Siasun Robot & Automation technology, AI+ manufacturing, supply chain restructuring, renewable energy, key energy storage infrastructure..., and that Tesla, Inc. under Musk has many areas of high growth potential and significant employment space, which are largely unrelated to US politics and cannot be escaped by the American people in the long term.Robotics & Automation, FSD (Fully Self-Driving) and autonomous taxi are seen as the next growth engines for Tesla, Inc. However, Morgan Stanley warns that the stock price of Tesla, Inc. may still be volatile in the short term and may be relatively weak in the next week or so.Tesla, Inc.'s Core in the "Long-term Bull Market": FSD, Robotaxi, and Optimus It is reported that Morgan Stanley has set a long-term bullish target price of $800 for Tesla, Inc. and emphasizes that the "long-term bull market logic" remains unimpeded. Morgan Stanley's long-term bullish view on Tesla, Inc. is based on the widespread adoption of the FSD autonomous driving system, the fully autonomous Robotaxi taxi network, and the immensely large AI humanoid Siasun Robot & Automation business (Optimus AI humanoid Siasun Robot & Automation)Morgan Stanley predicts that the Siasun Robot & Automation market could exceed the current global automotive market by a large margin. The Morgan Stanley analysis team believes that Tesla, Inc.'s current high valuation and valuation much higher than traditional car companies are still difficult to support with profits from traditional businesses. Investors generally only value its automotive business at a benchmark of $50-100 per share and stop there, a limitation similar to only viewing Amazon.com, Inc. as a regular online retailer or Apple Inc. as a hardware manufacturer. Morgan Stanley states that the core logic of Tesla, Inc.'s value lies in its "combination of cutting-edge startup businesses"artificial intelligence large models, autonomous driving networks, humanoid Siasun Robot & Automation, battery energy, energy storage, and other future potentials. With ChatGPT continuing to gain popularity globally and a new wave of AI led by DeepSeek focusing on a new "AI large model computing power paradigm" with "extremely low cost" and "high energy efficiency" comparable to OpenAI, artificial intelligence large models are beginning to deeply integrate with various industries such as healthcare, finance, education, as well as consumer electronics and other end applications, ushering in a new era of AI applications in human society. In Morgan Stanley's view, Tesla, Inc., with the Dojo artificial intelligence supercomputing system and the Optimus Siasun Robot & Automation (Optimus Siasun Robot & Automation) system, will be one of the biggest beneficiaries of the "global AI application wave." Tesla, Inc. has a world-class AI team, and the Grok series AI large models introduced by Musk's AI new force xAI may integrate deeply with Tesla, Inc.'s artificial intelligence supercomputing system in the future. Tesla, Inc. has developed FSD (fully autonomous driving), the Dojo supercomputer, and customized AI chips. FSD built on the Dojo AI supercomputing system with access to the most advanced Grok large model is like a "brain experiencing an upgrade in intelligence," making it a powerful catalyst for Optimus, which requires rapid inference capabilities based on visual scenes. In a research report, Morgan Stanley mentioned that there are nearly 4 billion workers globally with an average annual wage of $10,000equivalent to a labor market of about $40 trillion. If a humanoid Siasun Robot & Automation is rented at a cost of $5 per hour, it can replace two human workers with a wage of $25 per hourbased on this calculation, each humanoid Siasun Robot & Automation has a net present value (NPV) of approximately $200,000. The U.S. labor market has about 160 million workers. Conservatively estimated, replacing 1% of the workforce with humanoid Siasun Robot & Automation would create over $300 billion in value, equivalent to increasing Tesla, Inc.'s market value by about $100 per share. Therefore, in terms of Tesla, Inc.'s future stock price and market value prospects, the boost brought by humanoid Siasun Robot & Automation is remarkable.