As Wall Street Cuts Tesla, Morgan Stanley Raises Its Apple Target

The article contrasts Tesla’s weak Q2 results with Apple’s improving fundamentals and higher valuation support. Apple reported fiscal Q2 2026 revenue of $111.18 billion, EPS of $2.01 versus $1.94 expected, and record Services revenue of $30.98 billion, driven by strong iPhone 17 demand. The author argues Apple’s installed base, Services growth, and a fresh $100 billion buyback justify further upside, lifting the 12-month target to $361.72 with a bull case near $378. In contrast, Tesla missed Q2 EPS at $0.33 versus $0.54 expected, posted negative free cash flow, and trades at a much richer forward P/E of 161 versus Apple’s 34. The piece is broadly bullish on Apple and bearish on Tesla, highlighting a valuation gap and stronger execution at Apple as the key market takeaway.