Morgan Stanley Reiterates Overweight Rating on Tesla (TSLA)
Morgan Stanley analyst Adam Jonas reiterated an Overweight rating and $310.00 price target on Tesla (NASDAQ: TSLA).
The analyst comments "Electric vehicle growth depends on a well-functioning electric grid with relatively affordable electricity prices. Tesla’s capability in distributed energy generation (solar) and storage (Powerwall/Megapack) may hold some important cards in the evolution of the US grid as energy usage of compute/data grows. Tesla’s capability in distributed compute and thermal at the vehicle level may, over time, become an enabling part of the ‘hybrid compute’ infrastructure to address supply/demand imbalances and physical limitations of the grid. The auto industry is a ‘poster child’ sector of CO2 emissions and climate change… progress made within autos to reduce emissions on a gross level may be more than offset by growth in global emissions on a net level. As investors continue to associate electrical energy usage, grid efficacy and CO2 emissions with high growth/high profit companies in the tech sector, how would this change consumer, investor and regulatory perceptions about the auto industry’s role in climate change?"
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Shares of Tesla closed at $175.00 yesterday.