Tesla stock climbed Thursday despite a cautious note from Morgan Stanley. Morgan Stanley reiterated a "Hold" rating. The bank forecasts Tesla's 2026 vehicle deliveries will fall 9% below Wall Street consensus. The report cautioned that aggressive spending could cause negative free cash flow for the year.
Investor optimism stemmed from other developments. CEO Elon Musk is scheduled to appear at the World Economic Forum in Davos later today. Tesla announced a new EMI financing plan for the Model Y in India. This move aims to stimulate regional demand following a recent price reduction.
Investors anticipate Tesla's fourth-quarter earnings report scheduled for January 28. Key points of interest include vehicle delivery trends and profit margin stability. The company's 2026 outlook, including updates on AI and robotaxi initiatives, will also be scrutinized.