Morgan Stanley Snap Survey Shows More Would Rather Own an Index of Legacy Autos Versus Tesla (TSLA)

April 12, 2021 5:15 PM EDT
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Morgan Stanley analyst Adam Jonas surveyed their e-mail list of institutional investors and industry experts last week on Tesla (NASDAQ: TSLA) and asked one simple question: What would you rather own for the next 3 years?

1. Tesla

2. An index of the top 10 market cap legacy OEM stocks (equal weighted) consisting of: GM, Ford, Stellantis, VW, Daimler, BMW, Renault, Toyota, Nissan, Honda.

60% of survey responses chose the legacy OEM index while 40% picked Tesla, Jonas notes.

Jonas offered the following thoughts from the survey results:

  • Most of our client discussions reveal a sense that the legacy OEM’s call-optionality on EV exceeds any put-optionality on their ICE exposure.
  • Admittedly, our question did not give a 3rd or 4th option of start-ups or big-tech players that will, over time, compete for capital in EVs.
  • We note that our distribution list leans very much auto/industrial. We suspect the mix of answers could differ significantly if tech/ESG investors were surveyed.

The analyst reiterated an Overweight rating and $880.00 price target on TSLA.

For an analyst ratings summary and ratings history on Tesla click here. For more ratings news on Tesla click here.

Shares of Tesla closed at $677.02 yesterday.

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