One Wall Street Analyst Just Said Tesla Stock Could Be Worth $840: Time to Buy?

Morgan Stanley analyst Andrew Percoco recently increased his target price for Tesla stock from $820 to $840, while keeping an equal-weight rating. This modest 2.4% increase in the best-case scenario highlights the long-term potential of Tesla's robotaxi and robotic services. As Wall Street analysts often provide a range of price targets, one should not be overly excited by this slight upward adjustment.

However, the analyst points out that Tesla's future lies in higher-margin recurring revenue from these parts of the business. Tesla's robotaxi service, including its dedicated Cybercab, and Optimus robots present significant opportunities for generating recurring revenue. The Semi truck could also be a major source of income, with potential FSD revenue of more than $17 billion by 2040 if more than 80,000 autonomous Semi trucks are on the road.

Despite the challenges, the analyst believes that Tesla's FSD ambitions for the Semi truck are crucial for long-term growth.