Tesla stock rises after worst day in almost 5 years, Morgan Stanley says to buy the dip

Tesla is one of the companies that has been affected the most under Trump policies. Shares in the electric car firm fell more than 15%. However TSLA bounced back today because one of Wall Street’s biggest bulls said it was time to buy the stock.

Morgan Stanley analyst Adam Jonas said, “Tesla shares have fallen 50% from the Dec 17th highs (and down 45% YTD) on poor sales data, negative brand sentiment, and market de-grossing. We see the pullback as a buying opportunity for an embodied AI compounder.”

This is the notion that says when people are panicking because of market crashes, it is the right time to invest. After all, Musk is a great business man and the expectations that the company will pick up because of his involvement in Trump’s administration are still there.

Tesla’s shares recovered somewhat, rising 3.6%  when US markets opened today. Other US tech stocks also regained some lost ground. Now, Tesla shares are back to around the level they were before the US election.

What to expect – Morgan Stanley’s take 

It seems obvious that Jonas thinks that the Tesla “narrative” and how people feel about the company tend to move along with the share price. His point is that when the stock is going up, the story is about Tesla’s AI projects and self-driving technology. When the stock is going down, it’s about lost sales, Musk’s distractions, and the company’s brand.

Jonas thinks that the next year will be very unstable. This year, Morgan Stanley looked at their bear case ($200) and bull case ($800).

As the year comes to a close, Jonas thinks that positive events such as the “unveiling” of robotaxi testing in Austin, new federal rules on regulating autonomous vehicles, an update on Optimus robots, and technology “milestones” related to cars will happen. Jonas and Morgan Stanley rate Tesla stock as a “Top Pick” and set a $430 price goal for it. 

Musk said that running the DOGE project might make it harder for him to run his other businesses, such as Tesla, SpaceX, and xAI. He explained it was because he had to work for the government and keep an eye on his company at the same time. He said, “It is tough sledding[…], but I think we’re doing the right thing.”

Trump claims to support Tesla, but his policies are saying a different story

There has been a protest at Tesla’s showrooms. However, supporters have come up with a slogan “I stand with Tesla.”

An attack on Tesla is an attack on one of America’s greatest innovations.

Tesla isn’t just a company—it’s a symbol of progress, independence, and the future.

I stand with Tesla. Do you? pic.twitter.com/UCmOe90JSd

— Eric Trump News🇺🇸 (@EricTnews) March 10, 2025

President Trump joined the conversation where he said that protests at Tesla stores were organized by people on the left who were “illegally and collusively” trying to get people to stop buying from the company.

He went on to say that he would buy a Tesla to show his support for the company, although the purchase has not been confirmed.

Today, Trump took to his Truth Social platform trying to drum up Tesla sales. He asked “Republicans, Conservatives, and all great Americans” to support Musk, who has been putting his energies into trying to slash federal government jobs.

Even though he said it, Trump’s policies so far have been meant to slow down the sales of electric cars. For example, he revoked a 2021 order from former president Joe Biden that half of all car sales should be electric by 2030 and stopped using government funds that were not being spent on charging points.

Trump’s taxes could also hurt the company that makes the goods. In January, Vaibhav Taneja, Tesla’s chief financial officer, said that the levies would apply to parts that came from Canada and Mexico, which could hurt the company’s ability to make money. Is Trump really for Tesla?

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