Tesla (TSLA) gets boost from Morgan Stanley over eyeing revenue from software services

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Tesla’s stock (TSLA) is rising again today, and it can be partly attributed to Morgan Stanley turning positive on the stock over eyeing revenue from software services.

Morgan Stanley analyst Adam Jonas was an early fan of Tesla on Wall Street. He was even referred to as a “Tesla cheerleader” by some.
However, the analyst and his team at Morgan Stanley haven’t been positive on Tesla’s stock for years.
They haven’t recommended to buy Tesla’s stock since 2017.
As a matter of fact, if Tesla investors would have listened to Morgan Stanley, they would have missed the biggest run of Tesla’s stock over the last year:

But now Jonas is changing his tune and after the S&P500 decided to include Tesla in the indice, Morgan Stanley is now rating Tesla a “buy” again — or more accurately, an “overweight’ rating with a new price target of $540 a share, which represents a significant upside from the current price..
The price target increase is due to Morgan Stanley now accounting for the potential of Tesla’s software-as-a-service revenue:

We conservatively estimate Tesla’s Network Services business to account for between ~1-2% of revenue today, rising to over ~6% …

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