Tesla decline represents buying opportunity, says Morgan Stanley

Morgan Stanley keeps an Overweight rating and $430 price target on Tesla (TSLA). The stock is down 50% from December 17th highs on poor sales data, negative brand sentiment, and market de-grossing, but this pullback is a buying opportunity for this “embodied AI compounder”, the analyst tells investors in a research note. There are a number of events that could serve as catalysts, the firm notes, citing Austin robotaxi unveil some time in June-August, the likely pull-forward of updated Federal rulemaking around autonomous vehicle technologies, and an AI/Humanoid day demonstrating the latest capabilities of Tesla’s Optimus, the firm adds.