A group of Morgan Stanley analysts upgraded Tesla’s stock to “overweight” from “equal-weight,” prompting the electric vehicle company’s share price to rally over 10% Monday afternoon.
Tesla’s rallied more than 10% on Monday after Morgan Stanley predicted the electric vehicle maker’s Dojo supercomputer would add up to $500 billion to the company’s market value.
Tesla was enjoying a share price of $273.94 as of Monday afternoon — a figure that has already more than doubled so far this year — after a group of Morgan Stanley analysts led by Adam Jonas upgraded the stock to “overweight” from “equal-weight.”
The “overweight” rating means Morgan Stanley’s bankers believe Tesla’s stock price is about to outperform its industry, and usually indicates to investors that they should buy up more shares.
The investment bank also raised Tesla’s 12-month price target from $250 per share to $400 per share — a Wall Street-high.
Morgan Stanley’s bullishness is driven by the potential of the Elon Musk-owned brand’s Dojo supercomputer — which makes use of thousands of GPU chips from Nvidia and is used to train Tesla’s self-driving features.
