Tesla’s Stock A Top Pick At Morgan Stanley

Electric vehicle (EV) manufacturer Tesla stock price (NASDAQ: TSLA) has experienced a mini rally over the past month, with impressive gains that have injected optimism into its market stance. Over the course of two robust trading sessions, Tesla's stock value has added 14.72%, providing a welcome lift, as TSLA remains red on a YTD basis (-7.35%).

This positive shift in sentiment comes on the heels of the company's announcement regarding the impending rollout of its Full Self-Driving (FSD) capabilities in key markets across Europe and China, and also coincides with Nio's quarterly release. The FSD technology, which promises to inch Tesla closer to realizing fully autonomous vehicles, has been a critical area of focus for the company and a source of excitement for both consumers and investors alike.

In a post on X, Tesla said it will launch its Full Self Driving driver assistance product in Europe and China early next year. The post expected the launch to begin in the regions in the first quarter of next year, “pending regulatory approval”.

Morgan Stanley have also weighed in on Tesla's stock, putting TSLA at the top of it's auto picks. With a $310 price target, and an outperform rating, the firm clearly see plenty of upside in the stock, with Tesla recapturing $230 in trading.

In the note, Morgan Stanley mentioned the fact that Tesla's price has significantly underperformed its peers in mega cap tech over recent years, and remains down significantly from all-time highs. Consensus estimates falling almost 50% over the past 12 months are believed to be part of the reason behind the drop.

Tesla's shares are gathering momentum, buoyed by the promising advances in their autonomous driving technology and the support of certain analysts does no harm to sentiment. With the company steering towards new horizons in Europe and China, market watchers are keenly observing whether Tesla's innovative strides will continue to fuel its financial journey forward or is a false dawn.