Tesla Hits Highest Since September After Morgan Stanley Says Buy
Tesla Inc. Model S 90D electric vehicles sit on display. (Photographer: SeongJoon Cho/Bloomberg)

Tesla Hits Highest Since September After Morgan Stanley Says Buy

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Morgan Stanley gave Tesla Inc. an overweight rating for the first time in more than three years, predicting that Elon Musk’s firm is on the verge of a “profound model shift” from selling cars to generating high-margin software and services revenue.

“To only value Tesla on car sales alone ignores the multiple businesses embedded within the company,” analyst Adam Jonas wrote in a note as he upgraded the shares from equal-weight and raised his price target by 50% to $540.

Tesla shares extended their surge on Wednesday, rising as much as 9.8% to $484.98. The stock jumped 8.2% Tuesday after it was selected for admission to the S&P 500 Index and has gained nearly 500% this year.

Jonas’s valuation now includes Tesla’s network services, energy storage and insurance businesses. The internet-of-cars opportunity is also real, and a prerequisite to unlock further gains for the stock, the analyst wrote.

Tesla Hits Highest Since September After Morgan Stanley Says Buy

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