Elon Musk continues to show complete dedication to Tesla, says Morgan Stanley. The company’s CEO’s recent China visit to clear obstacles to the rollout of Full Self-Driving (FSD) signals his commitment to the company during what is a turbulent period.
In a note on Monday, firm analyst Adam Jonas wrote that Musk’s visit to China is a strong signal. “Elon Musk’s visit to China means far more than seeking approval for self-driving tech on Chinese roads. Whether Tesla’s CEO is sleeping on a floor or on a plane… the message is clear: he’s back,” he wrote, according to CNBC.
Jonas reiterated his “overweight” rating on Tesla shares and a price target of $310 per share. Such expectations suggest an upside potential of more than 82% from Friday’s close of $169.29. On Monday, the manufacturer’s shares jumped 14.4% following news of Musk’s visit to China and meeting with Chinese Prime Minister Li Qiang. Many investors appreciated the company’s efforts to promote FSD and further develop in China.
Musk’s focus on Tesla has been questioned by some investors since he bought X, formerly known as Twitter, in 2022. They did not want the CEO to split his attention and time between other companies and projects, demanding he dedicate himself entirely to Tesla.
“Investor concerns around whether Elon Musk was ‘all in’ on Tesla have been weighing heavily on the stock since the compensation package was rejected by Delaware judge,” Jonas said. “Even the smallest gesture of commitment (an unannounced trip to Beijing) has elevated meaning here, combating concerns over Musk’s commitment to Tesla relative [to] the broader Musk ecosystem of companies,” such as SpaceX, he said.
