Wall Street's biggest Tesla bull still sees the stock rebounding 122% from current levels - and doesn't blame Musk's Twitter dalliance for a brutal December sell-off

Despite recent turmoil, Morgan Stanley is still bullish on the stock.

The price target on the stock has been slashed by a long time supporter of the company. His new forecast still calls for 120% upside from Wednesday's close.

There are two main reasons for his continued optimistic outlook, one of which is that electric-vehicle competitors will see benefits from the inflation reduction act.

A growing chorus of critics have pointed to Musk's preoccupation with social media as a major loss driver, but when addressing the more than 65% drop in the company's stock price in the next four years, Jonas stopped short of blaming Musk's preoccupation with social media. He said it was due to supply out pacing demand for the first time since the COVID-19 Pandemic.

Demand will exceed supply in the last two years. "We believe that players that are self-funded, non-reliant on external capital funding, with demonstrated scale and cost leadership throughout the value chain can be relative winners."

There are hurdles to overcome because of a worsening macro backdrop and record high unfavorability. In the face of all these pressures, we believe thatTesla will widen its lead in the EV race, as it uses its cost and scale advantages to further itself from the competition.