Morgan Stanley: "Tesla Benefits from Infrastructure Bill... Target Price $880"

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[Asia Economy Reporter Byunghee Park] Morgan Stanley advised buying Tesla Motors stock, stating that not holding Tesla shares is a risky move.

According to Bloomberg on the 7th (local time), Morgan Stanley analyst Adam Jones said in a report released that day, "Tesla could receive disproportionate benefits thanks to the U.S. Infrastructure Bill," recommending a buy.

U.S. President Joe Biden unveiled a $2.25 trillion infrastructure bill on the 31st of last month. According to the bill, $174 billion will be invested in the U.S. electric vehicle ecosystem.

Analyst Jones stated, "This investment could expand Tesla's competitive advantage over traditional automakers," and "Thanks to the infrastructure bill, Tesla will likely be able to increase production volume more than other competitors."

However, Jones noted that there is significant volatility related to the development of the electric vehicle sector, and there may be some short-term uncertainties each year. Nevertheless, he analyzed that in the long term, not holding Tesla stock is riskier than holding it.

Tesla's stock price rose 743% last year but has fallen about 5% this year. On this day, Tesla's stock price was $670.97.

Jones recommended a buy rating for Tesla with a target price of $880. The current average target price for Tesla among Wall Street analysts is $651. The investment opinions are 17 buys, 13 holds, and 12 sells.