Auto investors risk losing out if they don't own Tesla shares: Morgan Stanley
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Last Updated: Apr 08, 2021, 07:48 AM IST
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Morgan Stanley has a buy-equivalent rating on Tesla and a price target of $880.
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By Esha Dey and Joe Easton
Tesla Inc. can disproportionately benefit from the U.S. infrastructure package, and investors in the auto sector risk losing out if they don’t own the stock, Morgan Stanley said.
The Biden administration proposes allocating $174 billion to develop the country’s electric-vehicle ecosystem, which could enhance Tesla’s advantage over legacy car companies and even some new entrants, analyst Adam Jonas wrote in a note Wednesday. However, he warned that the development may happen in a volatile fashion, bringing in some near-term uncertainties that might differ from year to year.