Tesla stock has fallen from its highs. This analyst raised the bull case to $800.

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Tesla (TSLA) shares have fallen 19 percent since hitting a record high last month, but a top analyst raised his price target as he raised bullish conditions to $800 per share, the EV giant’s “Network Services” holdings. Current price. Shares of TSLA fell on Tuesday after a push on Monday.

Morgan Stanley analyst Adam Jonas raised his price target on TSLA to 430 from 400 on Monday, maintaining an overweight rating on the stock and remains a “top pick” on the company. Jonas’s price target is a 9% upside to Tesla’s stock’s current market price.

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Long-term Tesla bull TSLA’s recent stock price appreciation has begun to discount the ‘surface area’ between Tesla and physical AI, including the company’s inherent strengths in data collection, robotics, energy storage, AI/computing, manufacturing and support. Infrastructure”

“We still see scope for 2025 as the year in which the market’s appreciation for Tesla’s unique combination of capabilities is reflected in many and offsets the relatively well-known FY25 EV market challenges,” Jonas wrote Monday.

Morgan Stanley price

The analyst expanded his value estimates for the network services segment — autonomy, charging, maintenance, software updates and media content — and the company’s autonomous driving capabilities as “a material competitive advantage that Tesla has established.”

For a 430 price target, Jonas values Tesla Network Services at $168 per share, or 39% of his total value target. Meanwhile, Jonas valued Tesla’s autonomous robotaxi service at $90 a share, a dollar more than the valuation for Tesla’s core auto business.

Jonas also raised his bullish position on Tesla stock to $800, up from $600 on Monday. In this scenario, Tesla will sell 7 million vehicles by 2030 at a 26% gross margin. The auto business is valued at $130 in this scenario, while Tesla’s ride-hailing service is valued at $263 per share, or 33% of the $800 price target. Jonas has Tesla Networks facing $248 per share in his bullpen.

“While autos are still important,” Jonas writes, “we’ll see AI designed as a chauffeur to revise an $800 bullpen.

Tesla stock performance

TSLA rose to 422.64 but fell 1.7% to 396.36 in market action on Tuesday, after rising 2.2% to 403.31 on Monday, testing its 10-week moving average.

The stock fell a fraction to 394.74 on Friday, but rebounded from its 10-week low. Tesla shares fell 3.8% for the week, hitting a 21-day low, even as the EV giant refreshed its popular Model Y in China.

Tesla stock has gained 62.5% in 2024, almost all of this in the fourth quarter, especially after the election of President-elect Donald Trump.

TSLA stock is at IBD Leaderboard Watchlist.

Tesla stock ranks first in the 35-member IBD Automobile Manufacturers Industry Group. The stock has a composite rating of 93 out of 99. The stock has a Relative Strength Rating of 97 and an EPS Rating of 78.

Please follow Keith Norton on X @KitNorton For more coverage.