Tesla’s (TSLA) stock has received a new street-high price target of $810 per share from Morgan Stanley on a clearer path to selling millions of electric cars per year.

Tesla (TSLA) stock price

Tesla’s stock is up 2% in pre-market trading today, and there are a few things that could be driving the price higher.

First off, while too close to call for now, the Democrats are leading in the two run-off elections for Senate seats in Georgia.

As we reported last month, the results could have an important impact on Tesla since the Democrats take control of the Senate if they win both seats, and with control over the House of Representatives and the White House already, they would likely be able to pass a reform to federal EV incentives, which is likely to benefit Tesla.

Furthermore, Tesla has also received a new Wall Street–high target price.

New Wall Street–high target price for Tesla (TSLA)

Morgan Stanley analyst Adam Jonas was out with a new note to clients on Tesla last night in which he increased the firm’s price target on the stock to $810.

The analyst sees a clearer path to Tesla reaching millions of electric vehicle sales per year and increased his 2030 volume estimate from 3.8 million vehicles to 5.2 million vehicles.

He wrote in the note:

In our opinion, Tesla is still the best positioned company in EVs and AVs under our coverage due to its people, its technology, business model and access to capital. Furthermore, it is important to note that the company has no entanglement with the environmental liabilities that burden its legacy competition. Put it all together and we believe Tesla’s business model can unlock recurring mobility services revenue faster and more profitably than the competition.

Jonas and Morgan Stanley were early fans of Tesla on Wall Street, and Jonas was even referred to as a “Tesla cheerleader” by some.

However, Jonas turned negative on Tesla, and Morgan Stanley stopped recommending to buy Tesla for years until recently:

The analyst started recommending Tesla again late last year right around the same time that Tesla announced a $5 billion capital raise, which Morgan Stanley participated in.

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