Tesla in midst of ‘profound realignment,’ says Morgan Stanley

Morgan Stanley analyst Adam Jonas believes Tesla is “in the midst of the most profound realignment of priorities and strategy in the company’s history.” Given this view, the firm says it is “understandably, confusing” but “given time, it may make sense.” The EV industry is “entering a commoditized dark age, while the AI and robotics industry is entering a renaissance,” says the analyst, who sees Tesla “making room for the AI ‘capital game'” as stories have surfaced around Tesla’s delaying the Model 2, making a greater than 10% headcount cut, downsizing its supercharger team and slowing gigacasting spend. Tesla’s AI potential will remain capped “unless and until the voting control issue is resolved,” added the analyst, who keeps an Overweight rating and $310 price target on Tesla shares.