Tesla's Retail Army Stays Guarded Despite Morgan Stanley's Bullish 2025 Outlook As Shares Slip Further

Tesla, Inc. shares fell 3% in premarket trading Monday, extending Friday’s losses amid a broader tech selloff. 

Morgan Stanley raised its price target for Tesla to $430 from $400 — implying more than a 9% upside from the last close — while maintaining an ‘Overweight’ rating, according to The Fly.

The analyst cited the company’s leadership in emerging fields like embodied AI and autonomous rideshare technology.

The brokerage said its revised bull case of $800 underscores Tesla’s potential to capitalize on its competitive advantage in AI and advanced mobility, positioning it as a “Top Pick” for 2025. 

Morgan Stanley reportedly said it sees scope for 2025 as "a year where the market's appreciation for Tesla's unique combination of skills can be further reflected in the multiple."

However, retail sentiment on Stocktwits, where Tesla boasts nearly a million followers, remained ‘neutral’ heading into the fresh trading week. 

TSLA sentiment meter Jan 13 premarket as of 9 am ET | source: Stocktwits

Many retail investors expressed caution, with one predicting a slide below $350 — levels last seen in early December.

One chart-watcher pointed out that Tesla’s stock is approaching a key support zone near $394, marked by the convergence of its nine- and 21-day exponential moving averages.

Last week, Axios reported that Tesla’s regulatory credit sales could face challenges under President-elect Donald Trump’s policies, which some analysts have pointed out earlier. 

Regulatory credits have been a significant revenue stream for Tesla, and any policy shifts could weigh on its bottom line.

In a note last week, Morgan Stanley noted that Tesla's share of the U.S. battery EV market in December declined to 42.3% versus 49.0% a year earlier.

Conversely, some optimists have pointed to Elon Musk’s prominent role in Trump’s administration as a potential regulatory advantage. 

Easing restrictions on autonomous driving, a cornerstone of Tesla’s future robotaxi plans, could mitigate near-term concerns.

Tesla shares have surged over 71% in the past 12 months, reflecting confidence in its long-term prospects despite current headwinds.

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