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Zacks Investment Ideas feature highlights: Tesla, Alphabet and Morgan Stanley
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For Immediate Release
Chicago, IL – March 13, 2025– Today, Zacks Investment Ideas feature highlights Tesla (TSLA - Free Report) , Alphabet (GOOGL - Free Report) and Morgan Stanley (MS - Free Report) .
Can Tesla Stock Recover from the 2025 Market Crash?
Tesla Stock Plunges to Start 2025
Toward the end of 2024, EV-king and Zacks Ranked #3 (Hold) stock Tesla was soaring amid a Donald Trump Presidential victory, autonomous vehicle plans, and investor optimism. 2024 was a landmark year for the stock, which ignited after shareholders overwhelmingly voted in favor of CEO Elon Musk's massive pay package, which a Delaware court tried to block.
However, in 2025, Tesla's fortunes have reversed 180 degrees. TSLA shares have round-tripped all gains since the US presidential election and are already down more than 40% year-to-date.
Clearly, based on the stock price, investors are concerned about Elon Musk's reputation and absence due to politics and "DOGE", falling European and China sales, and the market in general. Below are five things you need to know about Tesla now:
Ron Baron CNBC Interview: Still Bullish for TSLA
If there's one investor who has his finger on the pulse of Tesla's long-term investing thesis, it's billionaire Ron Baron. Not only has Baron cultivated a personal relationship with Tesla CEO Elon Musk, but he also invested about $400 million in TSLA stock between 2014 and 2016. Since then, his initial investment has ballooned to over $5 billion. In addition, the last time Baron did a CNBC interview, he called the intermediate bottom in the stock nearly to the penny.
Tuesday morning, Baron reiterated his bullish thesis on Tesla, citing the upcoming Robotaxi rollout. Though Alphabet's Waymo has the early Robotaxi lead and is already live in several cities, Baron believes Tesla Robotaxi's will be more cost-effective and have higher margins. According to Baron, Waymos cost Google between $150k and $200k. Conversely, Baron believes that Tesla Robotaxi's will cost Tesla ~$35k to produce and will generate between $30-$50k over a multi-year time horizon. Currently, Tesla vehicles produce about $7k in profits, and little more after the initial sale.
Tesla Attacks & Boycotts: Trump, Others Pledge Support
International reports of vandalism against Tesla vehicles and property are rising amid political backlash from Elon Musk's political participation in the Trump administration as the head of the "Department of Government Efficiency." After Musk lost nearly $30 billion of his net worth in yesterday's route, President Trump pledged support for his friend and confidant, writing, "I'm going to buy a brand new Tesla tomorrow morning as a show of confidence and support for Elon Musk, a truly great American." Several right-leaning influencers made social media posts with new Teslas after Trump's show of support.
Morgan Stanley with a Massive Tesla Bull Call
Tuesday, a Morgan Stanley analyst made a big bullish call on Tesla shares, saying: "Tesla shares have fallen 50% from the December 17th highs (and down 45%) on poor sales data, negative brand sentiment and market de-grossing. We see the pullback as a buying opportunity for an embodied AI compounder." The MS bull case sees TSLA getting to $800 a share!
Is the Weakness Tesla Specific? Trump Trade Says Otherwise
While Tesla CEO Elon Musk is absorbing the brunt of the blame for Tesla's falling share price, the data suggests that the stock price weakness can also be attributed to the general market weakness. Roughly 75% of stocks follow the market direction, and TSLA is not immune to market weakness.
Nevertheless, TSLA is at a significant tipping point. Shares are working on their 8th consecutive down week while the relative strength index (RSI) indicator flashes its second-most oversold level in Tesla history.
Bottom Line
Tesla's dramatic reversal in early 2025 highlights Tesla's inherent volatility, political implications, and doubts. Though concerns surrounding Elon Musk's multifaceted activities and declining sales have hit the stock, Morgan Stanley and Ron Baron see the crisis as an opportunity.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Tesla, Alphabet and Morgan Stanley
For Immediate Release
Chicago, IL – March 13, 2025– Today, Zacks Investment Ideas feature highlights Tesla (TSLA - Free Report) , Alphabet (GOOGL - Free Report) and Morgan Stanley (MS - Free Report) .
Can Tesla Stock Recover from the 2025 Market Crash?
Tesla Stock Plunges to Start 2025
Toward the end of 2024, EV-king and Zacks Ranked #3 (Hold) stock Tesla was soaring amid a Donald Trump Presidential victory, autonomous vehicle plans, and investor optimism. 2024 was a landmark year for the stock, which ignited after shareholders overwhelmingly voted in favor of CEO Elon Musk's massive pay package, which a Delaware court tried to block.
However, in 2025, Tesla's fortunes have reversed 180 degrees. TSLA shares have round-tripped all gains since the US presidential election and are already down more than 40% year-to-date.
Clearly, based on the stock price, investors are concerned about Elon Musk's reputation and absence due to politics and "DOGE", falling European and China sales, and the market in general. Below are five things you need to know about Tesla now:
Ron Baron CNBC Interview: Still Bullish for TSLA
If there's one investor who has his finger on the pulse of Tesla's long-term investing thesis, it's billionaire Ron Baron. Not only has Baron cultivated a personal relationship with Tesla CEO Elon Musk, but he also invested about $400 million in TSLA stock between 2014 and 2016. Since then, his initial investment has ballooned to over $5 billion. In addition, the last time Baron did a CNBC interview, he called the intermediate bottom in the stock nearly to the penny.
Tuesday morning, Baron reiterated his bullish thesis on Tesla, citing the upcoming Robotaxi rollout. Though Alphabet's Waymo has the early Robotaxi lead and is already live in several cities, Baron believes Tesla Robotaxi's will be more cost-effective and have higher margins. According to Baron, Waymos cost Google between $150k and $200k. Conversely, Baron believes that Tesla Robotaxi's will cost Tesla ~$35k to produce and will generate between $30-$50k over a multi-year time horizon. Currently, Tesla vehicles produce about $7k in profits, and little more after the initial sale.
Tesla Attacks & Boycotts: Trump, Others Pledge Support
International reports of vandalism against Tesla vehicles and property are rising amid political backlash from Elon Musk's political participation in the Trump administration as the head of the "Department of Government Efficiency." After Musk lost nearly $30 billion of his net worth in yesterday's route, President Trump pledged support for his friend and confidant, writing, "I'm going to buy a brand new Tesla tomorrow morning as a show of confidence and support for Elon Musk, a truly great American." Several right-leaning influencers made social media posts with new Teslas after Trump's show of support.
Morgan Stanley with a Massive Tesla Bull Call
Tuesday, a Morgan Stanley analyst made a big bullish call on Tesla shares, saying: "Tesla shares have fallen 50% from the December 17th highs (and down 45%) on poor sales data, negative brand sentiment and market de-grossing. We see the pullback as a buying opportunity for an embodied AI compounder." The MS bull case sees TSLA getting to $800 a share!
Is the Weakness Tesla Specific? Trump Trade Says Otherwise
While Tesla CEO Elon Musk is absorbing the brunt of the blame for Tesla's falling share price, the data suggests that the stock price weakness can also be attributed to the general market weakness. Roughly 75% of stocks follow the market direction, and TSLA is not immune to market weakness.
Nevertheless, TSLA is at a significant tipping point. Shares are working on their 8th consecutive down week while the relative strength index (RSI) indicator flashes its second-most oversold level in Tesla history.
Bottom Line
Tesla's dramatic reversal in early 2025 highlights Tesla's inherent volatility, political implications, and doubts. Though concerns surrounding Elon Musk's multifaceted activities and declining sales have hit the stock, Morgan Stanley and Ron Baron see the crisis as an opportunity.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.