According to the Zhìtōng Cáijīng app, Morgan Stanley analysts stated on Tuesday that investors should take advantage of recent downturns to buy selected stocks in the clean technology and renewable energy sectors, such as NextEra Energy (NEE.US); the bank is currently re-evaluating the impact of various election results on clean energy.

Analysts led by Andrew Percoco believe that even if the Republican party sweeps Congress, it is unlikely to completely abolish the Inflation Reduction Act, but may reduce or partially abolish the act, with a focus on electric vehicle tax credits and direct payments.

Morgan Stanley believes that tax credits for domestic manufacturing, nuclear power, wind energy, and solar energy will receive support from both parties, and the risk of abolishing this policy will be reduced regardless of the composition of the government; whether it is a Democratic coalition government or a divided government with a Democratic president, the pace of IRA or clean energy development will not change.

The bank expects that the pace of data center construction, nuclear power production tax credits, and the potential for data center and nuclear power plant configurations in the United States will not change regardless of the presidential term, which should be a good sign for Constellation Energy (CEG.US) and Vistra Energy (VST.US).

Morgan Stanley stated that "demand for renewable energy is a powerful force." They believe that the new sources of demand may exceed the risks of changes in tax credits for wind energy, solar energy, and energy storage, and that AES Corp. (AES.US), First Solar (FSLR.US), and NextEra Energy will become buyers after recent poor performance.