8 Reasons Tesla's (TSLA) Expansion Strategy Should Be Aggressive - Morgan Stanley
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Morgan Stanley analyst Adam Jonas reiterated an Overweight rating and $900.00 price target on Tesla (NASDAQ: TSLA) offering 8 reasons Tesla will likely pursue a rapid expansion strategy and why it is the right thing to do.
1) It is important to produce within key markets. Cars don’t ship like iPhones and there are benefits in high localization.
2) Make each new factory its ‘best’ factory.
3) Spread bets across national regimes after learning recent valuable lessons on overdependence on concentrated/extended supply chains.
4) Help set technology standards in major regions.
5) Diversify outside of China.
6) Battery economics drive expansion with battery vertical integration co-located near final assembly.
7) Aggressively reduce price to prevent encroachment from big tech.
8) Partnerships are a natural outcrop of the global/scaled strategy.
Shares of Tesla closed at $623.71 yesterday.
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