Why TSLA Is Climbing Today

Tesla (TSLA) stock is advancing 5% today after good news on multiple fronts surfaced about the automaker earlier this week.

More specifically, the company’s newly redesigned Model Y appears to be popular in China, while Morgan Stanley unveiled a very ambitious “bull case price target” on TSLA.

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 Strong Demand in China Reported for the New Model Y

In just roughly 24 hours, Tesla received 50,000 orders in China for its updated Model Y EV, according to Chinese bloggers who said that they had obtained the information from Tesla’s salespeople. The 50,000 orders were reportedly tallied on the first day that they could be made.

 The SUV, whose price tag is 5% higher than that of its predecessor, is slated to start being handed over to buyers in March.

The refreshed Model Y is supposed to become available in Europe and North America in a number of months. TSLA has confirmed that it has begun producing the EV in Germany.

Morgan Stanley Places $800 “Bull Case Price Target” on TSLA

In a note to investors on Monday, the bank suggested that TSLA stock could jump to $800 in a year. According to Morgan Stanley, AI has become more critical for the automaker’s outlook as the EV sector becomes more competitive.

Boding well for the outlook of TSLA stock, Elon Musk’s firm has a meaningful edge over other firms in network services and autonomous ridesharing, according to Morgan Stanley.

The bank contends that Tesla can entice the owner of its EVs to pay subscription fees to it.

While we acknowledge the potential of TSLA, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.