Tesla's Growth Prospects in Light of Elon Musk's Political Engagement

Investing.com — Elon Musk's entry into politics may significantly impact Tesla's (NASDAQ:TSLA) growth and valuation, potentially backing a $500 bull case for the stock, as per Morgan Stanley (NYSE:MS).

Musk's public support of President-elect Trump has made him a key ally in the new administration, leading to a surge in Tesla's shares, which have jumped over 40% recently, currently trading around $350, surpassing Morgan Stanley's $310 price target.

Analysts at Morgan Stanley suggest that Musk's political ties could enhance Tesla's role in the U.S. renewable and autonomous industries, igniting investor optimism about its capabilities beyond just automobiles.

Despite Tesla's rising visibility, it still encounters skepticism. According to Morgan Stanley, Tesla is often excluded from investment portfolios due to its heavy reliance on car sales for revenue.

They believe that Tesla's transformative potential, akin to firms like NVIDIA (NASDAQ:NVDA), Apple (NASDAQ:AAPL), and Amazon (NASDAQ:AMZN), may be undervalued.

Morgan Stanley presents crucial assumptions for its 2030 $500 bull case, forecasting significant contributions from Tesla's automotive, energy, and network service sectors. Their projections anticipate:
– 8 million cars sold annually by 2030
– 400 GWh in deployed energy storage systems (ESS)
– $146/share revenue from network services, including software, services, and full self-driving (FSD) technology.

Additionally, Morgan Stanley highlights Tesla's plans for ride-sharing and third-party battery licensing as pivotal growth engines. Notably, the $500 bull case assessment does not account for the potential value of Tesla's humanoid robots, with speculation that replacing just 1% of the U.S. workforce with Tesla's Optimus could add around $100 to the share price.