Tesla has been setting trends in the automotive and technology industries for years. The successes and failures of Elon Musk's company affect the entire market and investors' decisions. The current level of Tesla's quotations may cast doubt on the company's further development. Especially since Morgan Stanley maintained a “Neutral” recommendation with a target price of $415.
See also: Elon Musk's door handles on the blacklist. It's about safety
As investing.com notes, higher inflation readings in the US have increased fears of stagflation, i.e. a combination of economic slowdown and rising prices. This is particularly concerning for growth-oriented companies like Tesla, which are sensitive to changes in the cost of money.
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Morgan Stanley noted that the development of the robotaxi fleet will be key to the value of Tesla's shares in 2026. Every kilometer driven by the robotaxi improves the Full Self-Driving technology, which can drive demand and improve the company's financial results.
Will robotaxi increase Tesla's value? The latest analysis from Morgan Stanley
Tesla's stock prices have aroused a lot of emotions in recent months. At the beginning of March, the company's shares exceeded the level of USD 405, and on March 18 they reached the level of USD 398.75. As Investing.com reminds, the company's shares increased by as much as 77% during the year, although some analysts believe that they are currently overvalued.
A key factor for Tesla's future is the development of autonomous robotaxis, which can fuel the company's growth and improve its financial results.
Emotions around the company are related to, among others: with the fact that Tesla had until March 9 to turn over accident footage due to the ongoing NHTSA investigation. It concerns Full Self-Driving (FSD), Tesla's advanced driver assistance system, key to the robotaxi vision.
See also: $15 billion evaporated. A disturbing report about Tesla
After meeting with Tesla and visiting Giga Texas, Morgan Stanley analysts positively assess the company's progress in the development of robotaxis. A potential increase in demand for Tesla cars, but above all, the successful implementation of robotaxis may trigger a domino effect throughout the company's ecosystem.
Morgan Stanley estimates that Tesla's cash flow could be negative by up to $8 billion in the near future. due to high investments. Still, advances in autonomous driving could improve sales and margins, supporting the company's long-term artificial intelligence goals.
Tesla will launch its own “Terafab” chip factory in Texas on March 21. It will also soon present the Optimus Gen 3 humanoid robot, production of which will start in the second half of 2026.
