December 15, 2025, 6:44 AM EST. Tesla stock faces a mixed outlook after Morgan Stanley analyst Andrew Percoco takes over coverage, lifts the price target from $410 to $425 and shifts the rating to Equal Weight. He argues Tesla remains a leader across EVs, autonomy, renewable energy, and real-world AI, but cautions a fragile, choppy trading environment over the next 12 months as he sees downside to estimates and catalysts for non-auto businesses largely priced in. A 7% cut could come if market-cap hurdles are cleared. He assigns about $60 of equity value per share to Optimus and singles out Full Self-Driving (FSD) as the crown jewel with potential to redefine personal driving. Bear and bull cases range from $145 to $860, with risks from competition, margins, and regulatory headwinds. The stock trades near $441.
