Morgan Stanley Raises Tesla Bull-Case Target Over Semi Potential

Morgan Stanley analyst Andrew Percoco raised the bull-case target price for Tesla stock from $820 to $840, while maintaining an equal-weight rating and a base-case target of $400. The adjustment follows projections that over 80,000 autonomous Semi trucks could be operational by 2040, potentially generating more than $17 billion in high-margin Full Self-Driving (FSD) revenue.

Production for the Semi is expected to grow from 4,000 units in 2027 to 12,000 in 2028. However, CEO Elon Musk stated that FSD development for the Semi is taking a "backseat for the next six months" as the company focuses on the Cybercab and v15 FSD for passenger vehicles. Musk noted that the software will be functional next year to support the scale-up to high production.