Source: Wall Street See

Musk announced that Tesla's next strategic plan is being formulated. In the market's view, this seems a bit urgent, after all, the second chapter has not been completed yet, and it has only been a year since the third chapter was made public.

However, in the view of "iron fan" Morgan Stanley, this may be a bullish signal, implying that investors should buy Tesla stocks before the release of the fourth chapter.$Tesla (TSLA.US)$However, in the view of "iron fan" Morgan Stanley, this may be a bullish signal, implying that investors should buy Tesla stocks before the release of the fourth chapter.

Morgan Stanley analyst Adam Jonas has released a new report predicting that the fourth chapter will be supported by artificial intelligence, robots, and hybrid computing technology, linking Tesla with Musk's other ventures (including SpaceX, Starlink, X, and xAI), investors should be prepared for this.

"Epic-level".

Earlier this week, Musk wrote on Twitter that he is developing the "Tesla Master Plan Part 4," and it will be "epic."

However, he did not disclose more details about the fourth chapter. Considering the time span from the initial leakage to the formal release of "Master Plan 3," Tesla's new chapter may not be unveiled until 2025.

The Master Plan has three chapters, and two of them are still unfinished.

In the first three chapters, Musk has set ambitious plans for Tesla:

On August 2, 2006, Musk published a blog post titled "The Secret Tesla Motors Master Plan (just between you and me)", announcing Tesla's Master Plan Part 1:

Step One: Build a low volume, high-end car.

Step Two: Use that money to develop a medium volume car at a lower price.

Step Three: Use that money to create an affordable, high volume car.

Step Four: Provide solar power.

In the following decade, Tesla has basically achieved this goal through Roadster, Model S, and Model 3.

In 2016, during the delivery of Model 3 and the acquisition of SolarCity, Musk released Tesla's Master Plan Part 2:

Integrate seamlessly with solar power generation and create stunning solar roofs.

Expand the electric vehicle product line to cover all major segments.

Develop a self-driving technology that is ten times safer than manual driving through large-scale fleet learning.

Let vehicles make money for their owners through sharing when they are not in use.

Other segmented market models mentioned in Part 2 include a new type of pick-up truck (later named Cybertruck), a compact SUV (Model Y), a heavy-duty truck (Tesla Semi), and the last type being a "high-density city transportation vehicle."

Currently, all new models in Chapter 2 have been released and most are in production, except for 'high-density urban transportation vehicles'.

Seven years later in 2023, Musk unveiled the ambitious third chapter of Tesla's grand plan:

Achieving 240TWh of energy storage, 30TW of green power generation, and $10 trillion of manufacturing investment,

Achieving 10% of the world's GDP with less than 0.2% of the land area.

The second and third chapters of the grand plan are far from complete, but Musk is already eager to work on the fourth chapter.

So, what ambitious plans will be unveiled in the fourth chapter?

Will artificial intelligence and robots be the main focus of the fourth chapter?

According to Morgan Stanley analyst Adam Jonas, for a company whose leadership is in electric vehicles, this will be "anything but the car".

Okay, Tesla will still make cars, but investors should prepare for other things.

We expect the fourth chapter to be supported by Tesla's business ambitions in artificial intelligence, robotics, and hybrid computing (including distributed thermal computing in cars), which will involve cloud-to-edge technology.

The leap forward of artificial intelligence technology in the past two years may be one of Musk's considerations for accelerating the update of the grand plan.

Therefore, Jonas believes that the fourth chapter will link Tesla and Musk's other businesses (including SpaceX, Starlink, X and xAI), and investors should prepare for it.

Is Musk opening up new sources of revenue? Morgan Stanley: Tesla

Jonas also compared Tesla to other tech giants, saying that just as video game chips are to Nvidia and book sales are to Amazon, cars are the core business for Tesla, but the company must seek new sources of revenue.

Although Tesla's automotive business is still crucial, we believe its impact on Tesla's fundamentals and valuation may decrease in the next 6 to 12 months due to the weak electric vehicle market and the introduction of new product categories.

Despite the varied views of Wall Street on Tesla's future, Jonas remains bullish on Tesla, giving an overweight (buy) rating and a target stock price of up to $310, which is about 67% higher than the current stock price.

In contrast, most analysts hold a hold rating on Tesla, with an average target price of only $176.96 and an expected 4% drop in the stock price in the coming months.

Editor/tolk