One Wall Street Analyst Just Said Tesla Stock Could Be Worth $840: Time to Buy?
The analyst update is not particularly significant on its own, but it helps highlight a Tesla business that deserves more attention.
Tesla stock could potentially reach $840 according to a Morgan Stanley analyst, Andrew Percoco. The analyst raised his bull-case target price for Tesla from $820 to $840 while keeping an equal-weight rating and a $400 price target in his base-case scenario. The current stock price stands at around $357, trading around 200 times its estimated 2026 earnings.
While Tesla is renowned for its hardware products such as electric vehicles and energy storage solutions, the company's future seems to be tied to higher-margin recurring revenue streams, specifically robotaxis (Cybercab) and Optimus robots. Investors should not be overly excited about a 2.4% increase in the target price. However, Percoco highlights the long-term potential of Tesla's transportation-as-a-service side, which relies on recurring fare revenue from Cybercabs, shares from third-party operators, and full self-driving (FSD) software.
Optimus is expected to operate under a robot-as-a-service model, generating long-term recurring software revenue.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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