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?"

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 $175.00 yesterday.

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