Not all analysts on Wall Street are convinced Tesla 's in-house computer technology is enough to push shares higher.
The analyst did not provide a forecast price target and said he now expects flat year-over-year automotive sales gross margin in 2024, minus vehicle credits and incentives.
What underpinned the Morgan Stanley upgrade on Tesla was optimism toward the company's effort with Dojo, an in-house supercomputer that is meant to train autonomous driving software.
Tesla has been on a price-cutting spree for much of 2023, with markdowns to both the Model 3 and Model Y .
While the analyst remains "sympathetic" over the long term on Tesla, he said, "We think that there is too much near-term uncertainty post its repeated price cuts."
Persons:
Tesla, Morgan Stanley's Adam Jonas, — Needham, Needham, Chris Pierce, Morgan Stanley, Pierce, markdowns, reboots, Michael Bloom