Goldman Sachs recently stated that robotaxis have officially entered the commercialization phase, signaling that the autonomous vehicle industry may finally be crossing a long-anticipated threshold. According to Goldman, the next phase is large-scale expansion, a move that could significantly benefit early leaders like Tesla.
Meanwhile, Morgan Stanley has doubled down on its bullish stance. The firm reaffirmed its long-term optimism for Tesla, maintaining an $800 bull-case target price. That's more than 150% above yesterday's closing price of $308.58, which itself marked a strong 4.55% gain on the day.
Tesla Motors (TSLA)
Is $800 a Realistic Target?
Personally, I believe that Morgan Stanley's $800 target is overly optimistic. That's not to say they're necessarily wrong but from my perspective, the target seems to ignore some of the real risks and headwinds facing Tesla today. These include:
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Macroeconomic uncertainty (e.g., high interest rates, inflation, consumer sentiment).
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Growing competition from both traditional automakers and EV startups.
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Elon Musk's recent public spat with Donald Trump.
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Valuation concerns: Even after recent dips, Tesla trades at a significantly higher multiple compared to peers.
That said, I do believe there's still room for upside in the short term, especially if we see resolution or reduced intensity in the Musk-Trump tension, which likely weighed on the stock earlier.
Alternative Plays: TSLL and TSLQ
While I don't personally buy TSLA stock directly, I do keep an eye on leveraged ETFs like TSLL and TSLQ, which can offer traders more flexible ways to capitalize on short-term movements:
TSLL – Direxion Daily TSLA Bull 2x Shares
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Moves 2x the daily performance of TSLA.
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If Tesla goes up, TSLL typically amplifies the gains.
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Good for bullish short-term plays.
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Lower per-share price means more shares can be purchased compared to TSLA.
Direxion Daily TSLA Bull 2X Shares (TSLL)
TSLQ – Tradr 2x Short TSLA ETF
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Moves 2x in the opposite direction of TSLA.
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If Tesla drops, TSLQ can surge—ideal for bearish bets.
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Similarly, the lower entry price and amplified movement can make it more appealing for quick trades.
Tradr 2X Short TSLA Daily ETF (TSLQ)
Volatility Cuts Both Ways
While the potential for larger profits exists, it's important to remember that leveraged ETFs come with heightened risk:
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Daily resets mean they're not ideal for long-term holding.
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A wrong call on direction can result in rapid losses.
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Tesla's recent volatility makes timing critical—this isn't a set-it-and-forget-it trade.
Final Thoughts
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I remain cautious on Tesla in the long term, and I don't fully buy into the $800 target.
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However, I acknowledge Tesla's short-term upside potential, especially if sentiment rebounds.
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Instead of holding TSLA directly, I prefer tactical plays via TSLL or TSLQ, depending on market setup and momentum.
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