Morgan Stanley analysts personally tested Tesla FSD and praised it: It completely changes the long-distance travel experience and may become a standard feature in the future
Morgan Stanley analysts gave Tesla stock an "Overweight" rating with a target price of $410 after using the Tesla FSD system for a long-distance trip. The analysts stated that FSD performed excellently during the 1,400-kilometer journey, with almost full autonomous driving, greatly changing the travel experience, and it may become a standard feature for electric vehicles in the future. The analysts believe that the convenience and safety of FSD make it an indispensable technology, similar to airbags
According to the Zhitong Finance APP, Morgan Stanley analysts released a research report sharing their experience of using Tesla (TSLA.US) FSD (Full Self-Driving) for a round trip between Westchester County, New York, and Franklin County, Michigan, covering approximately 1,400 kilometers. The analyst pointed out that over 99% of the journey was completed by the FSD equipped in their Tesla Model Y, and during nearly 12 hours of driving, their hands did not need to touch the steering wheel, and their feet did not need to press the pedals. This experience is difficult to express in words; only personal experience can convey it. Eye-tracking monitoring ensured they kept their gaze forward, but the pressure was much lower. The FSD did not encounter any mistakes or dangerous situations that the analyst could recall, and during their experience, the FSD performed very safely and confidently on the highway.
The analyst added that they could not imagine purchasing any electric vehicle in the future that does not come with FSD or similar advanced ADAS features. This is a game-changing technology that has completely altered their perspective on long-distance travel. Additionally, during this journey, the experience with the Supercharger network was extremely convenient, with charging station locations being very accessible—right next to toll highways or highways, and all located in safe areas with plenty of amenities, rest areas, and dining options nearby.
The analyst stated that once accustomed to FSD, it is difficult to return to a state without it. The analyst believes that FSD functionality will eventually become a standard feature in all Teslas (and all cars)—just like airbags, included in the overall vehicle price.
The analyst's rating for Tesla's stock is "Overweight," with a target price of $410. The components of this target price include: core automotive business $76, network services $159—assuming a 65% penetration rate by 2040, average revenue per user (ARPU) of $200, mobility services $90, energy business $68, and $17 for Tesla as a third-party supplier
