Morgan Stanley Reaffirms Tesla as "Top Pick," Target Price Raised to $430

Morgan Stanley analysts have reaffirmed that Tesla remains the market's "top pick," raising the target price from $400 to $430, a 7.5% increase. They emphasize the potential driving force of Tesla's autonomous driving technology and embodied AI (EAI) on the stock price. Analysts believe that Tesla's overall market scope will further expand, covering many areas not yet reflected in the existing financial model.

As of last Friday, Tesla's stock price had fallen nearly 18% from the record high on December 17 of last year, but Morgan Stanley remains optimistic about the stock's prospects. In the latest report, analysts maintained a target price of $200 in a bearish scenario, while in a bullish scenario, they predict that Tesla's stock price could rise to $800, implying a potential doubling of the stock price.

(Source: Google Finance)

In the report led by Adam Jonas, the analysis team conducted a comprehensive reassessment of Tesla's mobility (autonomous ride-hailing) model, noting the growing interest in autonomous vehicles. They believe that while the automotive business remains important, AI technology will become the main driver for stock price appreciation. The report highlights Tesla's expertise in data collection, energy storage, robotics, and artificial intelligence, which keeps it at the forefront of the autonomous driving field. Morgan Stanley values Tesla's autonomous ride-sharing business at $90 per share, projecting an EBITDA margin of 29%, with an estimated 7.5 million vehicles by 2040.

Additionally, Morgan Stanley views Tesla's network services (including software, Supercharging, and Full Self-Driving (FSD) subscription) as a significant growth engine, estimating its value at $168 per share and projecting it to contribute nearly 60% of EBITDA by 2040. Although Tesla's stock price initially dropped 3.7% after the report was released, it gradually recovered, ultimately closing up nearly 2.2%. Analysts' optimistic outlook and future market projections keep investors focused on Tesla's potential.

What is Dollar-Cost Averaging in Stocks?

Dollar-cost averaging, also known as monthly stock investment, refers to an investment strategy where a fixed amount is used to purchase specific stocks at regular intervals. This approach allows investors to buy shares without needing to purchase a whole unit each time, instead buying a proportionate number of shares based on their set monthly investment amount.

For example, consider Mr. Chen, who wishes to invest in the Tesla in stages. Using the dollar-cost averaging feature, Mr. Chen invests USD 1,000 each month, which uSMART uses to purchase shares at market price and deposits them into Mr. Chen's account. This way, Mr. Chen effectively buys around 2 shares of Tesla each week, achieving a low-threshold stock investment.

Advantages of Monthly Investment via uSMART

Choosing the right investment platform is crucial for dollar-cost averaging in stocks. Investing through the uSMART platform offers several significant advantages:

1. Commission-Free Trading

uSMART provides commission-free trading services, meaning investors do not have to pay commission fees for each stock transaction. This is particularly important for investors making regular investments, as accumulated commissions can significantly erode long-term returns. By investing through uSMART, you can allocate more funds to actual investments.

2. No Platform Fees

Besides commission-free trades, uSMART does not charge platform usage fees. This allows investors to enjoy a lower cost structure in long-term investments, further enhancing investment returns. This is especially beneficial for frequent small investments, as the absence of platform fees effectively reduces overall investment costs.

3. No Custody Fees

uSMART also offers the advantage of no custody fees, meaning you do not need to worry about management fees for account funds. This exemption provides investors with greater flexibility to manage liquidity and investment strategies.

4. Convenient Investment Experience

The uSMART platform features a user-friendly interface, allowing investors to easily set up a monthly investment plan and automate their investment process. The platform supports various payment methods, enabling investors to adjust their investment amounts flexibly based on their financial situation and investment goals.

5. Support for Fractional Shares

uSMART allows investors to make fractional share investments, meaning you can invest according to your set monthly amount even if you do not have enough funds to buy a whole share, further lowering the investment threshold and enabling flexible allocation.

How to Purchase Monthly Stocks on uSMART

Step 1: Log into the uSMART HK app and click "Trading" at the bottom right of the page.

Step 2: Click on "Dollar-Cost Averaging" in the second column of the page and select "All Dollar-Cost Averaging Stocks."

Step 3: Choose your desired dollar-cost averaging stock, select the investment amount, deduction method, and deduction date, then create your investment plan.

Once confirmed, the investment plan will take effect in real time.

(SOURCE: uSMART HK)