Tesla Inc. (NASDAQ: TSLA) has seen a staggering decline in its share price, plummeting 50% from December’s peaks and down 45% so far this year. Despite these losses, Morgan Stanley views the dip as a buy opportunity, pointing to Tesla’s potential as an AI leader poised for long-term growth.

The Current Decline: Drivers Behind Tesla’s Fall

1. Disappointing Delivery Metrics

• Tesla’s delivery figures have fallen below expectations due to factors such as:
• Increased Competition: The electric vehicle market sees mounting competition.
• Aging Neglect: Insufficient recent model updates weaken consumer interest.
• Buyer Hesitance: Anticipation for product releases causes a buyers’ strike.

2. Weakened Sales in Key Markets

• Falling European Sales: Tesla’s January sales tumbled 45% compared to last year, unlike the rising overall European car market.
• China Sales Details: Weekly sales predictions have nosedived from 15-17K to 11-13K as of late February.

Morgan Stanley’s Perspective on Tesla’s Resilience

Despite weak sales figures, Morgan Stanley remains optimistic about Tesla’s role in advancing AI and robotics:

Eyes on Key Catalysts

1. Robotaxi Reveal: Tesla is on track to showcase its autonomous taxi project in mid-2025, expected to boost investor enthusiasm.
2. AI Day Showcasing: Upcoming presentations on Tesla’s Optimus Humanoid Robot aim to solidify its leadership in AI tech.

Price Forecast Scenarios

• Bear Case: Potential decline to $200.
• Bull Case: Projections suggest a rally to $800 within a year.

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Investment Recommendations for Waiting Investors

Morgan Stanley maintains its stance that Tesla represents a premier selection in the auto sector, reinforcing the vision of long-term value in AI innovation. Even with short-term fluctuations, advancements in areas like autonomous driving, robotics, and energy solutions could lead to substantial growth.

Monitor Tesla’s Performance Metrics

For timely financial updates and analytics, leverage data sources to keep track of Tesla’s market performance and valuation changes.