Morgan Stanley Questions Tesla Valuation Amid Driverless Tech Hurdles

Morgan Stanley has raised concerns regarding the valuation of Tesla, noting that the market's current pricing of the electric vehicle giant relies heavily on the successful deployment of driverless technology. The firm suggests that the stock's premium is predicated on future autonomy rather than current automotive fundamentals. While Tesla is reportedly approaching significant milestones in its autonomous driving capabilities, analysts argue that the gap between technical achievements and commercial viability remains a critical risk for shareholders. The firm emphasizes that investors are increasingly seeking concrete proof of improvement in Full Self-Driving (FSD) and Robotaxi capabilities rather than optimistic projections. From a market perspective, the analysis suggests that the stock may struggle to find a catalyst for upward movement without verifiable progress in AI-driven autonomy. This comes at a time when the core electric vehicle business faces intensifying global competition and pricing pressures. Ultimately, the firm concludes that the burden of proof has shifted. For the stock to lift, Tesla must demonstrate that its driverless technology is not just approaching a milestone, but is delivering a scalable, safe, and commercially viable product.