Oops! Morgan Stanley goes against the trend and predicts a 75% increase in Tesla's stock price (TSLA.US).

Tesla (TSLA.US) and other electric vehicle stocks have recently plummeted, leading some analysts to believe they are undervalued. Morgan Stanley analyst Adam Jonas even believes that Tesla's stock price could accelerate by nearly 75%. He reiterated his "overweight" rating on Tesla in mid-February, with a target price of $345. Jonas and his team acknowledge that the market is generally bearish on this leading company in the electric vehicle industry. However, they believe that many investors have a narrow view of the company's business. In their view, Tesla will also benefit from advancements in artificial intelligence (AI) and other popular technology areas. For example, the company is developing Optimus, described as "a general, bipedal humanoid Siasun Robot&Automation that can perform unsafe, repetitive, or boring tasks." The Morgan Stanley analyst stated, "Our view of Tesla is that it is both an automotive company and an energy, artificial intelligence/Siasun Robot&Automation company. In fact, the valuation of its core automotive business ($75 per share) is only 22% of the $345 target price." They believe that while the current weakness in the electric vehicle market is unfavorable for manufacturers like Tesla, the negative impact on the stock price will be short-term. It is understood that Jonas and his team have been bullish on Tesla for a long time, but they had lowered their expectations for Tesla earlier. In January of this year, they lowered the target price for the stock from $380 to the current level, citing an oversupply in the electric vehicle market. However, The Motley Fool analyst Eric Volkman does not agree with Jonas' optimistic view of Tesla. Volkman believes that the consumer frenzy for electric vehicles seems to have ended, and meanwhile, the company continues to lower prices to boost sales. Volkman also holds a pessimistic view on Tesla's autopilot system, stating that the system seems to need more development and testing. So far this year, Tesla's stock price has fallen by nearly 23%.