Tesla(US:TSLA) Morgan Stanley·2025-05-22 00:50Investment Rating - The investment rating for Tesla Inc is Overweight with a price target of $410.00, while the stock closed at $343.82 on May 20, 2025 [3]. Core Insights - Tesla is positioned as more than just a car company, with significant developments expected by year-end to reinforce this narrative [1][2]. - Elon Musk expressed confidence in the deployment of unsupervised robotaxis in Austin within 40 days, with an initial rollout of 10 cars expected to expand to 1,000 within a few months [5]. - The report emphasizes the need for federal autonomy standards in the U.S. to compete effectively with China in the race for autonomous vehicles [5]. - Tesla is committed to a 'vision only' approach for its self-driving technology, believing it to be safer than multi-sensor systems [5]. - There is openness from Tesla to licensing its self-driving technology to other automakers, although expectations for immediate announcements are tempered [5][6]. Summary by Sections Company Overview - Tesla Inc is recognized as a top pick in the Autos & Shared Mobility sector, with a current market capitalization of approximately $1,210.59 billion [3]. Market Position and Strategy - The company plans to geofence the initial deployment of robotaxis in Austin to ensure safety, focusing on the safest parts of the city [9]. - Musk highlighted the long-term importance of autonomy and the Optimus robot, suggesting a shift in focus towards these innovations [9]. Financial Projections - The price target of $410 is derived from multiple components, including $75 per share for the core auto business, $160 for network services, $90 for Tesla Mobility, $67 for energy, and $17 for third-party supplier roles [12].