Tesla becomes Morgan Stanley's top pick for automotive stocks, with stock prices potentially surging by 40% leading the industry revolution
Tesla is now Morgan Stanley's top pick among US auto stocks, with a potential 40% upside. Morgan Stanley believes Tesla is showing strong performance in emerging drivers of its automotive business and company value, emphasizing its potential monopoly position in the zero-emission vehicle market. Tesla's stock price rose after the news. Morgan Stanley also pointed out that Tesla is shifting resources to other areas, with artificial intelligence business opportunities potentially larger than autonomous driving cars. Tesla, as an electric vehicle manufacturer, has made significant progress in recent years, while the position of traditional automaker Ford is changing
According to the financial news app Zhitong Finance, Tesla (TSLA.US) has now replaced Ford as Morgan Stanley's top pick in the U.S. automotive stocks. Analyst Adam Jonas and his team at Morgan Stanley are optimistic about Tesla's prospects, giving it a target price of $310, implying a 40% upside potential. They believe that Tesla has made progress in controlling expectations in the automotive business and that the emerging drivers of company value are strong. Jonas particularly emphasized Tesla's potential monopoly position in the Zero Emission Vehicle (ZEV) credit market and its growing recurring service revenue.
After Morgan Stanley rated Tesla as the top stock in the automotive industry, the stock saw a significant price increase in early trading on Monday. During pre-market trading, Tesla's stock rose by 1.72% to $223.48, although this price is still below its 52-week high of $278.98. It is worth noting that Tesla's short interest accounts for only 3.8% of the total float, indicating market confidence in the company.
Jonas also pointed out that Tesla is actively shifting resources, technology, talent, and capital from the automotive manufacturing sector to other areas. At the same time, he observed that Ford (F.US) discussed electric vehicles far more than Tesla in the second-quarter conference call, which may reflect the increasing industry focus on electric vehicles.
Morgan Stanley's analysis also mentioned that the commercial opportunities for artificial intelligence outside the automotive sector may be larger and faster in application than autonomous vehicles. They believe that the commercial potential of humanoid robots may even surpass that of autonomous vehicles and attract more capital investment.
The positive evaluation of Tesla by the bank also marks a change in the perception of traditional fuel vehicle manufacturers such as Ford among investors. While Ford remains one of the world's largest automakers, its market value and performance have declined in the face of intense market competition and transformation pressures.
Meanwhile, as a global leader in electric vehicle manufacturing, Tesla has made significant progress in sales growth, product innovation, production capacity expansion, and charging network construction in recent years, strengthening its competitive advantage in the industry.
Analysts generally expect the electric vehicle market to continue to grow rapidly with government support for renewable energy development and environmental policies. Investors are optimistic about the prospects in this area and are focusing on companies that excel in technological strength, brand influence, and innovation capabilities. Tesla is one such company, with its strong position in electric vehicles and energy storage business making it a star stock in the eyes of investors