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Tesla's favorability score among Democrats and Republicans is shifting, according to a fresh analyst note from Stifel that keeps a $474 share price and a Buy rating on the stock. Stifel's note follows trepidation among investors about its CEO Elon Musk's proximity to and role in the Trump administration. The stock has lost nearly a quarter of its value year-to-date, but the investment bank believes that Musk's proximity can help the firm with unsupervised full self-driving (FSD) and help it generate long-term value. Stifel was joined by Morgan Stanley, which maintained its Overweight rating and $430 share price target and Overweight rating and reinstated the stock as a top pick.
Morgan Stanley's Tesla Bull Case Lists Down Price Target As $800
Tesla's stock has failed to perform in 2025 mostly due to delivery slippages that have spooked investors. Data shows that Tesla's January sales fell by a whopping 59% in Germany and dipped by 26% in France, in a trend that is attributed to Musk's rhetoric against the continent.
Stifel's investor note outlines that in the US, Tesla's 'favorability' is shifting between Democrats and Republicans. It shares that "Democrat's view on TSLA, which is now reach all-time lows, while Republicans willingness to Buy a Tesla has risen sharply."
The investment bank also notes headwinds to Tesla's short term sales. While Stifel admits that these headwinds place the firm's "short-term delivery forecasts at risk," it adds that "there are arguably other factors at work as well (e.g., timing of new Model Y)."
Stifel outlines that its $474 Tesla share price target is based on "a sum-of-the-parts valuation" which includes the firm's assisted driving platform dubbed full self driving (FSD) and its autonomous taxi, the Robotaxi.
"We reiterate our view that the regulatory path to unsupervised FSD (a key to Robotaxi) is likely easier with Musk's influence," believes the investment bank.
Morgan Stanley's Adam Jonas, who is one of the most bullish Tesla voices on Wall Street, is more forthcoming in his brief comments for Tesla. Jonas maintains his firm's Overweight rating and $430 share price target for Tesla and keeps an Overweight rating on the shares.
Jonas outlines that "TSLA shares are down nearly 30% YTD on a clear buyers' strike," but adds that his bank is reinstating the firm as a 'Top Pick' among car manufacturer stocks in America. While Morgan Stanley's price target has a ">50% upside," Jonas adds that his firm's bull case price target of $800 can unlock significant value for investors.
However, like Stifel, Jonas also admits that Tesla can face short-term headwinds. "TSLA FY25 deliveries could potentially decline YoY," he notes, but believes that these can create "an attractive entry point to our preferred embodied AI name."
Jonas' optimism comes as Wedush's Dan Ives speculates that Tesla can reach a $2 trillion valuation. Tesla's affordable EV and Musk's multitasking can help the firm over the longer term, believes the analyst. Like Morgan Stanley, Ives is also optimistic about Tesla's AI potential and initiatives such as the Cybercab and humanoid robots.
