Written by Sinad Karahimetovic
An analyst at Morgan Stanley reflects on Tesla (NASDAQ:) shares following the company’s 10th annual Laguna conference.
Analyst recommends investors gain/increase exposure to Tesla and FREYR Battery (NYSE: ‘in conviction’).
“Tesla is a cheap way (yes, we said that) to gain exposure to manufacturing the global battery supply chain. In our opinion, TSLA does not necessarily need the tens of billions of tax credits guaranteed by the IRA, and furthermore, Tesla may be one of the only companies in the The world could open new giant plants and generate positive EBITDA immediately, the analyst said in a client note.
The analyst added that the passage of the Inflation Reduction Act (IRA) could be “almost too good” for Tesla. Morgan Stanley estimates that Tesla could manufacture more than 3.1 million electric vehicles in the United States by 2030.
“Assuming an IRA ‘increase’ of $10,000 per unit could equal more than $30 billion for the company, which is roughly a 50% potential increase over our $65 billion EBIT.”
Morgan Stanley has an overweight rating and a $383 share price target for Tesla stock.