Tesla’s stock could see big gains if the company expands beyond cars and CEO Elon Musk gains more political influence, especially with a possible second Trump presidency.
According to Morgan Stanley analysts, Tesla shares could reach $500 in their best-case scenario, a 50% increase from Tuesday’s price of around $332.
“Tesla is more than a car company; it’s a mix of potential growth areas,” the analysts noted. “Some of these might succeed soon, while others may take longer to develop.”
Currently, 80% of Tesla’s revenue comes from car sales, but analysts believe this could change if Tesla succeeds in other areas like AI, energy storage, and robotics.
Tesla’s energy sector, in particular, has shown impressive growth, with storage deployments doubling last year and likely to double again this year. This has led analysts to think Tesla’s energy business could one day outshine its car sales.
The analysts also see self-driving technology as an innovation that could position Tesla as a leader in AI.
“Success in autonomy will require expertise in data, robotics, energy, AI, and manufacturing,” the analysts said. “We believe Tesla is well-positioned to benefit from these trends over time.”
Musk’s increased political influence could support Tesla’s expansion. As a strong ally to President-elect Trump, Musk could advocate for policies that support electric vehicles, AI, and renewable energy, which could accelerate Tesla’s growth beyond cars.
Musk even suggested he’d like to lead a new “Department of Government Efficiency” to cut federal spending.
Tesla’s stock has been rising, up 34% since the election, as investors seem optimistic about the company’s future with Musk’s influence in Washington.
