Tesla (TSLA) Draws Fresh Attention as Morgan Stanley Highlights Solar Opportunity

Tesla, Inc. (NASDAQ:TSLA) is one of the 10 Trending AI Stocks According to Analysts. Tesla’s ambitions beyond electric vehicles seem to be drawing in renewed scrutiny, prompting fresh analysis from Wall Street. On February 10, Morgan Stanley reiterated the stock as “Equal Weight,” citing is constructive outlook on Tesla based on its opportunity in solar. The firm has $415 price target on the stock.

“We believe TSLA’s decision to allocate capital to solar mfg is rooted in a strategic long-term outlook around evolving geopolitics and data center demand. Besides the potential 35% uplift to our Tesla Energy valuation, it offers potential synergies by integrating deeper into the energy supply chain.”

Morgan Stanley’s rating follows the company’s tentative announcement to add 100 GW of solar manufacturing capacity. It believes that Tesla’s plan to vertically integrate solar manufacturing aligns with CEO Elon Musk’s goal for the deployment of solar-powered data centers in space.

Based on preliminary estimates, Tesla Solar could add $20-$50 billion ($6-$14 per share) of equity value to Tesla’s Energy business at full capacity. The firm currently values this at $140 billion ($40 per share).

While immaterial to Tesla’s overall valuation, the capital allocation seems justified by the value creation and growth opportunities, an investment without which the EV maker could face numerous energy-related bottlenecks.

Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.

While we acknowledge the potential of TSLA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.