Morgan Stanley raises TSLA price target after realizing what every Tesla fan already knows

Tesla stock market

After downgrading Tesla (TSLA) earlier this year and lowering its price target for the automaker, Morgan Stanley appears to have seen the light and reversed course.

For the first time in more than three years, analyst Adam Jonas gave TSLA an overweight rating. In a note to investors Jonas said the automaker is about to make a “profound model shift”, finally recognizing what Tesla fans have been saying for a long time (via Tesla Daily).

“To only value Tesla on car sales alone ignores the multiple businesses embedded within the company, and ignores the long term value creation arising from monetizing Tesla’s core strengths.”

Along with the bullish rating, Jonas increased the price target to $540 from $360. His valuation now includes Tesla Energy, Tesla Insurance, and the automaker’s network services.

Shares of TSLA are up nearly 10% in trading Wednesday after it was announced earlier this week the automaker will finally be joining the S&P 500 Index in December.

TSLA shares Nov 18 2020

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Senior Contributor. White Long Range AWD Model 3 owner since October 2018. EV fan since 2012 with my first Nissan Leaf | Mike@DriveTeslaCanada.ca Have a Tesla tip? Email tips@driveteslacanada.ca, or DM us on Twitter @DriveTeslaca