1 Wall Street Analyst Thinks Tesla Stock Is Going to $310. Is It a Buy?

Anticipation is building for Tesla's (NASDAQ: TSLA) upcoming "We, Robot" event on Oct. 10. Investors are expecting to hear from CEO Elon Musk about the next stage of growth for the electric vehicle (EV) company, especially in light of recent weakness in EV demand.

The stock is trading down after Tesla reported its production and delivery numbers for the third quarter. The company delivered 462,890 vehicles, within the 460,000 to 465,000 range that analysts were expecting, but investors were likely hoping for better numbers.

There are a lot of mixed opinions on Wall Street regarding Tesla stock, but Morgan Stanley analyst Adam Jonas is taking the long view on the company's prospects. He rates the shares with an overweight (buy) rating and a $310 price target, representing upside of about 27% from current levels.

Why buy Tesla stock

The analyst pointed out that over 80% of Tesla's expected 2024 revenue will come from EVs, but over time, the business could change. The company is making a big push into artificial intelligence (AI) to lay the groundwork for a robotaxi service, which could one day contribute a significant portion of Tesla's revenue and profit. As investors get a clearer picture of Musk's vision for Tesla in robotics and other AI initiatives, the stock could move higher.

Indeed, Musk calls Tesla an AI and robotics company, not a car company. The analyst referenced the relationship between Tesla and xAI (also led by Musk), which developed the Grok conversational AI model. Musk acknowledged on the Q2 earnings call that Tesla has learned a lot from xAI.

Tesla's upcoming event should provide a clearer picture of the company's future in AI, which Jonas apparently sees as a catalyst for the share price. However, the stock's performance heading into 2025 will still be heavily influenced by EV demand since that's still Tesla's primary business right now.

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John Ballard has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.