Morgan Stanley has upgraded Tesla’s stock rating and forecasts Elon Musk will achieve 12 performance targets tied to his 2023 compensation agreement, signaling growing confidence in the company’s strategic trajectory. The move comes amid heightened investor focus on executive incentives and long-term execution.
- Morgan Stanley upgraded Tesla (TSLA) to 'Overweight' rating
- Musk expected to meet 12 performance milestones in his 2023 compensation package
- Key targets include 20 million vehicle deliveries and $200B annual revenue by 2027
- Revenue projection: $189B by 2027, up from $96B in 2023
- Gigafactories in Texas and Berlin cited as key production drivers
- Pre-market TSLA shares rose over 3% following report
Morgan Stanley has upgraded Tesla Inc. (TSLA) to an 'Overweight' rating, citing a favorable outlook on the company’s ability to meet critical performance milestones under Elon Musk’s executive compensation package. The firm now expects Musk to achieve 12 distinct objectives linked to vehicle deliveries, revenue growth, and market capitalization by 2027, a significant uptick from prior expectations. These milestones are central to Musk’s $56 billion pay package, which is contingent on Tesla delivering on ambitious growth and profitability benchmarks. The 12 targets include hitting 20 million vehicle deliveries, achieving $200 billion in annual revenue, and maintaining a market capitalization above $2 trillion. Morgan Stanley’s analysis suggests Tesla is on track to meet or exceed several of these goals, particularly in vehicle production and energy business expansion. The firm’s updated model projects TSLA revenue to reach $189 billion by fiscal 2027, up from $96 billion in 2023, driven by increased production at Gigafactories in Texas and Berlin, as well as stronger demand in China and North America. Additionally, Morgan Stanley notes that Tesla’s AI and autonomy roadmap, including the development of full self-driving capabilities, could provide a long-term earnings catalyst. The upgrade has triggered a positive reaction in pre-market trading, with TSLA shares up over 3% in early session activity. Investors are particularly attentive to the alignment between executive incentives and shareholder value, with this report reinforcing confidence in Tesla’s leadership and future scalability.