Tesla has now replaced Ford as Morgan Stanley's preferred American auto stock.
Futubull Finance has learned that Tesla (TSLA.US) has now replaced Ford as Morgan Stanley's preferred American auto stock. Morgan Stanley analyst Adam Jonas and his team have a positive outlook on Tesla's prospects, with a target price of $310, implying a 40% upside in stock price. They believe Tesla has made progress in expected control of the auto business and has strong emerging drivers for company value. 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 auto stock pick, the stock saw a significant increase in early morning trading on Monday. During pre-market trading, Tesla's stock rose 1.72% to $223.48, although it is still below its 52-week high of $278.98. It is worth noting that Tesla's short interest is only 3.8% of total shares outstanding, demonstrating the market's confidence in the company.
Jonas also pointed out that Tesla is actively transferring resources, technology, talent, and capital from the automotive manufacturing field to other areas. At the same time, he observed that Ford (F.US) discussed electric cars far more than Tesla during the second quarter conference call, which may reflect the industry's increasing attention to electric cars.
Morgan Stanley's analysis also mentioned that the commercial opportunities for artificial intelligence outside the automotive field may be greater than those for autonomous driving cars, with a faster application speed. They believe that the commercial potential of humanoid robots may even exceed that of self-driving cars and will attract more capital investment.
The bank's positive assessment of Tesla also marks a changing perception of traditional fuel auto manufacturers such as Ford in the eyes of investors. Although Ford remains one of the world's largest automakers, its market cap and performance have declined in the face of fierce market competition and transformation pressure.
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 protection policies. Investors have a positive outlook on this field and are focusing on companies that perform well in terms of technological strength, brand influence, and innovation capabilities. Tesla is precisely such a company, with a strong position in the electric vehicle and energy storage business, making it a star stock in the eyes of investors.