On November 13, Financial Association News (Editor Huang Junzhi) With the U.S. about to enter the 'Trump 2.0' era, Elon Musk, the "big donor" who played a key role in his campaign, and his company Tesla have recently gained a lot of attention. Previously, Musk's alignment with Trump has already helped boost Tesla's stock price by around 40% to a two-year high.

Despite the fact that $Tesla (TSLA.US)$ Stocks plummeted by 6.15% on Tuesday, as investors began to take profits, and the 'Trump trade' cooled down across the board. However, according to Morgan Stanley analysts, the issue is not significant. Year-to-date, the stock has accumulated a 32.23% increase.

Morgan Stanley stated on Tuesday that if this electric car company can expand its business beyond autos and if CEO Elon Musk demonstrates newly acquired political power in the 'Trump 2.0', Tesla's stock price will still have significant room for growth.

Lead by analyst Adam Jonas, they predict that in the most optimistic scenario, Tesla's stock price will rise to $500 per share, implying a further increase of about 52.2% from the current level.

Comprehensive Development

According to Morgan Stanley analysts, 80% of Tesla's revenue so far this year comes from car sales, which is why it is often excluded from the excitement surrounding artificial intelligence, datacenters, wind power, siasun robot&automation technology, and outsourcing.

However, they believe that if Tesla can achieve success beyond its core auto business, this situation may change in the coming years. The analysts wrote in their latest report: 'Tesla is a car company. This is a fact. However, we also view Tesla as a set of call options.'

morgan stanley analysts specifically mentioned Tesla's energy business. They pointed out that although investors had little interest in this business a few quarters ago, the situation changed in 2023. Deployment of Tesla's energy storage systems increased by 125% within a year and is expected to double again this year.

They wrote that this means Tesla's energy business will soon surpass its autos business, and the claim will no longer be disputed. According to Morgan Stanley's calculations, the gross margin of Tesla's energy business (solar+storage) is almost twice that of its autos business.

In addition, Morgan Stanley also believes that Tesla's autonomous driving capabilities could potentially become the "key" to transforming it into an ai giant.

"In our view, the winners of autonomous driving will be those companies that can combine the capabilities of data, robots, energy, ai, manufacturing, and downstream infrastructure. We believe that over time, Tesla has the ability to benefit from this theme," they wrote.

Political Power

Morgan Stanley points out that in the coming years, Musk may have even greater political influence, which will help drive other themes.

Since the election, investors seem to be betting that Musk and his company will benefit from his close relationship with the elected president. Data shows that in this election cycle, Musk provided over $0.13 billion to Trump and other Republicans. He also expressed his support in critical swing states like Pennsylvania.

On November 12th local time, President-elect Trump announced in a statement that Musk and Vivek Ramaswamy will jointly lead a plan to establish a government efficiency department (DOGE) after he takes office as president.

Analysts say it is clear that Musk has acquired significant political influence. If he applies this influence to policies that promote electric cars, robots, and wind power development, Tesla could accelerate its process of surpassing auto manufacturers.

"To lead the USA onto the path of electric cars/autonomous driving/robots/renewable energy independence, it requires government and industry collaboration, comparable in scale to the Manhattan Project, the US Highway Act, or the Apollo Mission. Elon Musk has transitioned from a political 'outsider' to a potential key player in policy making, which may to some extent accelerate Tesla's development beyond the automotive sector," they stated.

Editor/Somer