Tesla Q3 results could mark a ‘bottom’ in sentiment, says Morgan Stanley

Morgan Stanley analyst Adam Jonas says “one of the strongest Tesla (TSLA) prints in a while” could mark a “bottom” in auto earnings expectations and sentiment. Specific comments about “slight” FY24 delivery growth and next gen/lower cost new product intros from the second half of 2025 help to address investor concerns around top line growth, though large growth in capex raises near and long term questions about the capital intensity of the business and “the business model itself,” the analyst tells investors. Morgan Stanley has an Overweight rating and $310 price target on Tesla shares.