Elon Musk ‘is back’ says Morgan Stanley after China visit

Elon Musk ‘is back’ says Morgan Stanley after China visit

Elon Musk Tesla

Elon Musk’s recent visit to China sparked significant interest and optimism from analysts at Morgan Stanley, who declared “he’s back” in a note to clients Monday.

While the trip was clearly aimed at securing approval for Tesla’s (NASDAQ:TSLA) self-driving technology in China, the implications run deeper, said the bank.

Analysts suggest that Musk’s visit to China is a clear sign of his renewed commitment to Tesla, effectively addressing investor concerns that arose after setbacks such as the compensation package rejection by a Delaware judge.

Morgan Stanley believes the symbolism of Musk’s unannounced visit to China resonates strongly, signaling his dedication not just to Tesla but also to his broader ecosystem of companies.

Moreover, “Musk winning blessing from the PRC for FSD roll-out in the country seems to address embedded fears of Tesla’s China profit,” wrote the investment bank.

In addition, analysts highlighted the potential national security implications of Musk’s dealings in China, given his involvement in missions with SpaceX and various US government agencies.

Additionally, the convergence of artificial intelligence (AI) and robotics is underscored in regard to Tesla, with the firm stating, “There may be far more overlap in how the advancement of LLM accelerates the training and learning of the robot -whether it is a ‘car shaped’ robot or a human-shaped one.”

Overall, Musk’s visit to China is viewed as a clear message with positives for Tesla. Morgan Stanley maintained its $310 price target and overweight rating on the electric vehicle giant.

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