The best-case scenario for Tesla stock is zooming to $500
Morgan Stanley analysts increased its “bull case” for Tesla to $500 a share on Thursday, in the firm’s calculation of a best case scenario for the company’s value if Cybertruck is successful and the new factory in China exceeds expectations.
Morgan Stanley analyst Adam Jonas said he sees Tesla selling 100,000 Cybertrucks by the end of 2024, at an average price of $50,000. Additionally, Jonas believes Tesla’s Gigafactory in China could perform better than anticipated and reach a production rate of 450,000 units per year by 2024/2025.
China is a big market for Tesla. And China has an impact on Tesla's performance.
There’s little denying that China is crucial for Tesla’s plans. The country is the largest electric vehicle market. Furthermore, the Chinese government is doubling down on its vehicle electrification plans. Read How China’s Aggressive EV Push Could Benefit Tesla for more insight. Unlike the US, where changes in the White House affect policies, China is firm on its support for electric vehicles. Higher vehicle electrification helps China to cut down on pollution and oil imports. For Tesla, China is the largest market outside the US.